Quiksilver files for bankruptcy
Surfware company Quiksilver has filed for bankruptcy in the United States, but says the move would not affect its New Zealand shops.
Quiksilver, which made a US$309 (NZ$484) million loss last year, has filed for a ‘‘Chapter 11’’ restructuring, allowing investment company Oaktree Capital to provide financing and assume control of the reorganised company.
Quiksilver’s president, Greg Healy, said the Asia-Pacific business continued to be strong on its own and were not part of the filing.
‘‘This means we will be running our business as usual – Australian, New Zealand and Asian customers will have normal access to the full range of our iconic brands, Quiksilver, Roxy and DC Shoes, and all that they offer to our consumers and the market place.’’
Healy said the US business had acquired too much debt, and more recently had tried to maximise sales volumes, putting at risk its relationships with its youth customers.
He said the bankruptcy procedure would be positive for the business as a whole, allowing the European and Asia Pacific businesses to continue withough the ‘‘constant drag’’ of the US businesses. ‘‘Chapter 11 is generally not a path to liquidation, unlike a formal Administration in Australia which often leads to the sale of assets and the break-up of a company.’’
Quiksilver would continue to support top athletes.
Staff in New Zealand were surprised by the news, with one manager said he had heard nothing about problems in New Zealand.
A report from Bloomberg said QuickSilver had been trying to attract bidders for a managementled buyout, ideally outside of a bankruptcy. But that would have made it more difficult to abandon the chain’s leases, something Chapter 11 will allow it to do.
Founded in 1969, Quiksilver has about 700 shops, including six in New Zealand. But a shift away from surfer fashion – along with broader pressures on the apparel industry – took their toll, Bloomberg said.
After a period of heady expansion, Quiksilver struggled to compete with fast-fashion retailers like H&M.