BILLABONG RIDES A WAVE OF SPECULATION
SHARES in Billabong have jumped amid speculation it is considering buying rivals Rip Curl and SurfStitch.
The acquisitions would bulk up Billabong, led by chief executive Neil Fiske, as it moves away from selling other brand’s board shorts and T-shirts and focuses on its own labels.
Business Daily understands Billabong, which posted a $77 million loss last financial year, has made an offer for online surf and skate wear retailer SurfStitch but is not looking to acquire Rip Curl.
Billabong bought 51 per cent of SurfStitch in 2009 and the option of taking over the company down the track.
SurfStitch bought back Billabong’s stake ahead of its float on the Australian share market, in December 2014.
Based in Queensland along with Billabong, SurfStitch’s share price more than doubled in less than a year but the retailer collapsed into voluntary administration in August after a string of acquisitions aimed at turning it into the Amazon of the action sports world. Shares in Billabong closed 3.3 per cent higher yesterday at 64c.