Liberated Brands Files for Bankruptcy: Impact on Australian Surf Brands

Liberated Brands, the entity that holds the licenses for Australian surf brands Roxy, Billabong, and Quiksilver, has filed for bankruptcy in the US. This move comes as part of a voluntary petition under Chapter 11 of the US Bankruptcy Code.

Bankruptcy Filing and Store Closures

In a statement, Liberated Brands confirmed the filing and announced plans to close over 100 retail locations in the US. Nine stores in Hawaii remain under review, indicating potential adjustments in the restructuring process.

Brand Licensing Transition

The company is in the process of transitioning its brand licenses to new license holders to ensure the continuity of these iconic Australian brands in the US market. This strategic move aims to protect the legacy and quality associated with the brands.

Challenges Faced by Liberated Brands

Liberated Brands faced significant economic challenges due to a volatile global economy, changes in consumer spending patterns, and rising inflation. These factors collectively impacted the company’s financial health.

“A volatile global economy, consumer spending changes amid a rising cost of living and inflationary pressures have all taken a heavy toll,”

Liberated Brands

CEO Todd Hymel cited the rise of fast fashion brands as a major challenge. Fast fashion companies offer low-cost, quick-delivery options that compete with traditional retailers.

“Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have such goods delivered within days.”

Todd Hymel, CEO

Impact on Retail Staff

The filing for bankruptcy has significant implications for employees. Liberated Brands has closed its corporate offices and laid off nearly 1400 workers, a substantial workforce impacted by this restructuring.

Future Outlook for Australian Distributors

The bankruptcy filing does not spell the demise of Australian distributors of the iconic brands. Authentic Brands, the US licensor of these brands, has ensured that the bankruptcy will not impact the brand’s future in the US.

Authentic Brands announced in 2023 that Liberated Brands would take control of operations of the Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element, and VonZipper stores across Australia, New Zealand, Thailand, and Indonesia.

Brand Origins and Ongoing Operations

Billabong was founded in 1973 on Queensland’s Gold Coast, while Quiksilver started in 1969 in Torquay, Victoria. Roxy, a sister brand of Quiksilver, debuted in 1990, originally specializing in women’s swimwear.

Currently, there are 18 Billabong stores and 13 Quiksilver stores across Australia. Quiksilver also sells its sister brand, Roxy, in its stores.

Conclusion

While the bankruptcy filing marks a significant transition for Liberated Brands, the enduring strength of these iconic Australian surf brands is likely to be maintained through new license holders. The restructuring aims to preserve the brands’ legacy and ensure their continued success both in the US and internationally.

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