Quiksilver Wipes $600 million debt!
And announces plan for string of megastores with live music, barber shops…
In a few weeks, the iconic surf brand Quiksilver will emerge from the cocoon of chapter 11 bankruptcy 600 mill lighter in debt.
According to SMH.com, “Under the reorganisation, US-based Oaktree Capital Management will swap its debt for equity, reducing Quiksilver’s debt from $US900 million to $US300 million and freeing up funds to enable the company to rebuild after six months in limbo.
“‘The Chapter 11 process has given this company the chance to have another life,” Quiksilver president Greg Healy, a former Melbourne Football Club captain, told Fairfax Media.’When we filed for Chapter 11 the global entity had $US900 million in debt. Chapter 11 allows us to reduce debt by $US600 million – we’ll be in a lot better shape,’ he said.
“Given a new lease of life by Oaktree, which will own more than 90 per cent of the company, Quiksilver is closing underperforming stores in North America, winding up or renegotiating contracts with athletes and licensees, restructuring its supply chain, rebuilding relationships with suppliers, and reducing the number of products by more than 20 per cent.
“As well, Quiksilver also plans to roll out a new retail format called Boardriders after successfully testing the concept with a handful of stores in Australia, Japan, Europe and Russia.
“Boardriders stores are around 750 square metres – three times the size of Quiksilver’s average store – and have barber shops, live music and hardgoods such as surfboards, skateboards and snowboards as well as Quiksilver’s full range of apparel and footwear brands.”
Do surf shops with hair salons and bands excite or do they repel?
If you had the keys to the brand, what would you do?