Australian surf brand, Billabong, has declared its flagship brand value to be zero. Four other brands the company now also values at nothing are: Element, Palmers, Beachculture and Amazon.
The company reported a net loss of R8,309,519,122 for the year ending June 30. Compare this to the loss they reported a year ago, R2,557,346,142, and it would seem the company is sinking fast.
Share price plummeted by 60% in the last year. Ouchies.
IG Markets Analyst, Evan Lucas said, “They have had an absolutely ginormous writedown, and that’s the only way that you can describe it.”
Billabong is determined to hang in there, and are making steps towards a revival. They are currently finalizing the appointment of former Oakley chairman Scott Olivet, as Chief Executive. They are also considering proposals to refinance their debt from private equity firms.
Chariman, Ian Pollard said that they are nearing the end of a very costly and long process, and added:
The company looks forward to refocusing, reinvigorating its brands and rebuilding the business on a solid, long term financial footing.
[Source: BBC, The Wall Street Journal]
