Reorganize your activity
Since January 2015, the group has lost 79% of its value on the stock market, forcing the California-based group to file for bankruptcy protection in the United States. At the close of business on Tuesday, September 8, its price was 44 cents (40 euro cents). A takeover plan for the company could be considered by Oaktree Capital Management, one of its creditors, which would provide $175 million to restructure the company.
This operation would last between three and six months. This would place the investor at the head of the majority of the capital of the Californian company. However, nothing has been validated yet, since the court that pronounced the freeze of the accounts has to give its approval. The investment fund Oaktree Capital Management has extensive experience in
in the field and also holds shares in Billabong.
With this new breath, Quiksilver could transform its business to become a reference player in the U.S. market. The goal is to invest and boost the brand's products.
Years of accumulated debt
Quiksilver was founded in 1969 and quickly became a reference in the world of board sports. At the end of April, the group had 700 stores all over the world. However, with the development of these sports, many competitors have appeared, including Billabong or Pacific Sunwear of California. In addition, the purchase of the Rossignol ski brand in 2005, which was supposed to boost the business, did not have the desired effect. The group even sold it at a loss in 2008.
This year, the group's sales fell by 13% and its losses widened to $309.4 million. In total, its debt is $826 million, three times more than its sales.
Quiksilver Europe and Asia spared
The company specifies however that the European and Asian subsidiaries are not affected by this bankruptcy. Indeed, as the group specifies, this restructuring will allow, on the contrary, to free the European and Asia Pacific entities from the financial constraints which weigh on them because of the American difficulties. Since April, Quiksilver is also well established in France, since from now on, the leaders are installed at the French headquarters, based in Saint-Jean-de-Luz. Pierre Agnès, the group's general manager, even plans to repatriate other businesses to France. The Quiksilver and Roxy brands are already managed from France, only DC Shoes continues to be managed from the United States.
Chapter 11 protects U.S. companies from bankruptcy
The American bankruptcy law is also called Chapter 11. It allows companies that are unable to pay their debts to reorganize under the protection of this law. "This proceeding facilitates the financial and operational restructuring of Quiksilver's U.S. operations, enabling the company to restore its financial viability on a sustainable basis."
