Quiksilver files for bankruptcy
September 9, 2015 12:30 PM
Surf and skate-wear wholesaler and retailer Quiksilver Inc. filed for Chapter 11 bankruptcy protection today in U.S. District Court in Delaware. It has $337 million in assets and $826 million in debts, according to its filing.
Quiksilver, No. 702 in the Internet Retailer 2015 Second 500, says the bankruptcy proceedings exclude its European and Asian operations, which it characterizes as strong.
Pending court approval, the retailer says it has secured $175 million in financing from Oaktree Capital Management and Bank of America to sustain operations while it restructures debt.
“After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver,” said Pierre Agnes, Quiksilver chief executive officer, in a prepared statement. Agnes took on the CEO role in March.
Quiksilver’s web sales over the last five years grew at a compound annual rate of 7.4%, according to Internet Retailer estimates. In addition to Quiksilver.com, the retailer also operates Roxy.com and DCShoes.com. For the six months ended April 30, the retailer says it generated $42.8 million online, up 1.9% from $42.0 million a year earlier. During the same period, net revenue declined 15%. It operated 719 stores at the end of the second quarter.
Other retailers to file for bankruptcy this year include The Wet Seal Inc., No. 490 in the Top 500 Guide, and SkyMall Inc., No. 283. Versa Capital Management LLC, a private equity firm, bought Wet Seal in the spring for an undisclosed amount and C&A Marketing Inc. acquired SkyMall for $1.9 million.