[Image: Wikicommons]
The company that holds the licences for Australian-founded surfwear brands Billabong, Quiksilver and Roxy has filed for bankruptcy.
US-based Liberated Brands – which runs the three labels along with Californian skate brand Volcom – will shut all its 120 US and Canadian stores, after clearing stock with up to 60% sales.
Todd Hymel, CEO of Liberated Brands, said, “Macroeconomic issues, including a rapid and dramatic rise in interest rates, persistent inflation, supply chain delays, a decline in customer demand well below the historical trendline, shifting consumer preferences, and substantial fixed costs placed significant pressure on Liberated’s revenue and cost structure.”
Shifting consumer preferences could well mean the rise of fast fashion houses, which many see as a threat to established brands like Billabong and Quicksilver.
‘The average consumer has shifted their spending away from discretionary products such as those offered by Liberated,’ Hymel said.
‘Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have goods delivered within days.’
Thanks a lot, Shein.
Billabong, founded in 1973 on the Gold Coast, gained a loyal following with its durable beachwear, while Quiksilver, launched in 1969 in Torquay, revolutionized the surf scene with Velcro-fastened boardshorts and high-profile athlete sponsorships.
Both brands peaked in the 1990s but later struggled financially, leading to a 2018 merger.
California-based Volcom, founded in 1991, became a staple in surf, skate, and snow culture with its rebellious ‘Youth Against Establishment’ ethos.
The Aussie brands were sold to New York-based Authentic in 2023 in a deal which was kept confidential but reportedly worth more than a billion dollars.
The seven brands operated by Liberated may not be gone forever as the company announced that it is “transitioning its brand licenses to new license holders as part of a management transition to ensure continuity for the brands and their success moving forward.”
At this stage, it’s not clear how the closure of US stores will affect South Africa, but hopefully, South African surfers will still get their Billabong gear.
[Source: MSN]
