Quiksilver US demise will not affect SA
INTERNATIONAL sport and surfwear retailer Quiksilver has filed for bankruptcy in the US.
Its South African operations, however, would not be affected by the move, the local unit said on Friday.
Quiksilver South Africa boasts brands such as Quiksilver, Roxy and DC Shoes, and employs about 232 people.
The retailer said its decision to file for bankruptcy in the US would not have any impact on the company’s organisation in Europe, which is the head office for South Africa.
“The procedure will in no way distract our main objective to continue to develop our business in South Africa . . . Our customers believe in us and we will continue to deliver quality products to meet their needs and passions,” said Arthur Limbouris, CEO of the local unit.
“For Quicksilver South Africa it is business as usual,” he said.
Asked if he was sure the developments would not hurt South African operations in the next few years, Limbouris said: “Nobody can be sure of anything, really. If the rest of the Quiksilver world remains profitable and the US can take this opportunity to restructure, then things should only improve.”
Quiksilver’s products are sold in more than 100 countries in a wide-range distribution network with corporate headquarters in Huntington Beach, California.
In South Africa, Quiksilver has 20 stores and sells through chain stores such as Edgars, Sportscene and Stuttafords, as well as 255 independent stores to which it distributes stock.
“The European and Asia Pacific entities remain profitable. South Africa is part of the European network. In addition, the South African entity is selffunding and sources and produces products for the South African market,” the retailer said.
Since it filed for bankruptcy, Quiksilver International has a new financial partner — Oaktree Capital Management investment fund — which will provide the business with stronger financial means in the US.
Oaktree will also back the company’s development as a whole.
Limbouris said he was not in a position to say whether any stores in the US might face closure as a result of the bankruptcy.
“We can’t really comment on that at this stage — but the indications are that the company would take advantage of Chapter 11 [of the US Bankruptcy Code] to get out of nonprofitable locations if possible.”