Latest news with #Liberated
Hindustan Times
27-05-2025
- Business
- Hindustan Times
Liberated Brands, owner of Quicksilver, Billabong, and Volcom, shuts stores and files for bankruptcy
Liberated Brands, a licensee of the global leader in apparel Authentic Brands, filed for Chapter 11 bankruptcy in February 2025. It held licenses to several brands under the Authentic Brands group such as Quiksilver, Billabong, Roxy, RVCA, Honolua, and Boardriders in North America along with wholesale licenses for Billabong and RCVA. In December last year, Authentic terminated Liberated's license rights for Volcom, RCVA, and Billabong following the company's failure to pay royalties. The company filed for bankruptcy soon after stating that the decision meant to 'implement an orderly monetization and disposition of its businesses. The company has been in the process of transitioning its brand licenses to new license holders as part of a management transition to ensure continuity for the brands and their success moving forward'. The licenses to the brands in question were soon transitioned to "new, well-capitalized partners who are actively investing in their growth and long-term success'. Liberated previously underwent a spike in revenue from $350 million in 2021 to $422 million in 2022 according to CEO Todd Hymel. He credited the sharp increase on demand during COVID-19 along with the acquisition of more brand licenses during that period as reasons for this growth. However, as interest rates began to rise following the end of the pandemic, demand for the company's products slipped drastically. There were hopes that Liberated would be able to regain its footing in the last 18 months but this was hampered by consumer interest shifting towards fast fashion instead. 'The average consumer has shifted their spending away from discretionary products such as those offered by Liberated,' Hymel said, as reported by Bloomberg. The traditional seasonal retail model found it difficult to keep up with the micro trend-oriented model followed by these new houses which produced larger quantities at lower prices. 'Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have such goods delivered within days,' Hymel added. Rise in interest rates, inflation, supply chain delays, and decline in customer demand were some of the macroeconomic issues faced by the company which were referred to as 'significant liquidity challenges in 2024' by Hymel. On the occasion of a partner being unable to oblige their commitments, Authentic's executive vice president of action and outdoor sports and lifestyle, David Brooks feels that the company can then transition the agreement to others in the network. 'Liberated's U.S. store fleet was overinflated, burdened with outdated and underperforming locations. As a result, physical U.S.-based stores will likely be rationalized, allowing the brands to create more value and strengthen their presence across specialty retailers, department stores, and e-commerce — ensuring a more agile and resilient future,' he added. While filing for bankruptcy, Liberated expected to keep its stores open to sell off the last of its stock. "Through the filing of customary motions with the Court, Liberated intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits. The Chapter 11 process will be financed by JP Morgan," the company shared. The company's liquidation sale process suffered a problem however when its expected proceed did not match its going-out-of-business sales. The $65 million earned from the sale of assets did not cover the amount to its creditor- JP Morgan. This development led a judge to dismiss the bankruptcy filing. Matthew Fagen, the Kirkland & Ellis LLP restructuring partner representing Liberated at the court hearing said, 'What that means, your honor, is that based on the amount of value collected and the amount of value that we expect to be collected, there will not be enough proceeds, unfortunately, to pay the DIP (Debtor-in-Possession) claim in full or to pay the adequate protection claim for the ABL lenders in full.' The company still needs to collect $27 million from the $65 million it has generated. A shortfall of $22.1 million in DIP claims and $5 million of ABL adequate protection claims is expected. An objection from one of the company's creditors led the judge to grant dismissal. All remaining funds will go to JP Morgan while none of the remaining creditors will be paid.
Associated Press
07-02-2025
- Business
- Associated Press
Quiksilver, Billabong and Volcom stores across the US will close as operator files for bankruptcy
NEW YORK (AP) — Outdoor apparel seller Liberated Brands, which has operated stores for surfer and skater-inspired labels like Quiksilver, Billabong and Volcom, filed for bankruptcy this week — and plans to shutter its locations across the U.S. Liberated filed for Chapter 11 bankruptcy protection in Delaware court on Sunday. In court documents, the California-based company said it would be winding down and liquidating its North American business after struggling with a series of macroeconomic shocks, supply chain troubles and falling profits due to 'fast fashion' rivals. 'The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,' Liberated Brands said in a statement. According to court filings, Liberated has decided to close all 124 of its U.S. brick-and-mortar stores, close its corporate offices and lay off nearly 1,400 employees. The liquidation sale process is already underway — and the company confirmed in a Monday press release that more than 100 stores will close after completion. But the exact timing is still unclear. The status of nine Hawaii locations are still in negotiations, Liberated said. While Liberated is working to shutter the vast majority — if not all — of its U.S. stores, popular brands like Quiksilver, Billabong and Volcom aren't going away. Those and other labels are owned by Authentic Brands Group, which partnered with Liberated to license U.S. operations. Authentic confirmed to The Associated Press on Friday that all licenses previously held by Liberated were transitioned to new partners prior to the bankruptcy filing. 'We've been working closely with Liberated Brands to thoughtfully transition key licenses to trusted operators within our network,' David Brooks, Authentic's EVP of action and outdoor sports, lifestyle, said in a statement. Brooks added that Liberated's U.S. store fleet was 'overinflated' and 'burdened with outdated and underperforming locations' — and that physical U.S. locations 'will likely be rationalized' in the future, perhaps with a stronger presence through department stores or e-commerce platforms. Beyond Quiksilver, Billabong and Volcom, Liberated has also operated stores or sold apparel for brands like Spyder, RVCA, Roxy and Honolua. Back during the height of the COVID-19 pandemic, as more and more consumers turned to outdoor activity or leisure apparel, Liberated reported soaring demand. But the company later struggled to keep up with larger macroeconomic headwinds — like inflation, supply chain disruptions and slowing customer demand, Liberated CEO Todd Hymel said in a sworn declaration. That 'combination of macroeconomic shocks' resulted in a 'lethal combination of significantly lower revenue,' Hymel wrote. Brick-and-mortar retails also continued to struggle after online shopping skyrocketed during the pandemic, he added. And he also pointed to the impact of 'fast fashion' on the industry. 'Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have such goods delivered within days,' Hymel said — noting that Liberated and others have 'suffered from decreased profit margins after losing part of their overall market share and pricing power to fast fashion.' Beyond the U.S., Liberated says it sold apparel to customers in more than 100 countries to date. This week's bankruptcy documents note that the company currently operating regional headquarters in North America, Europe, Japan and Australia. But, in addition to winding down its North American business, court filings the company is also anticipating one or more sales of other operations worldwide 'either on a going-concern or liquidation basis.'
USA Today
07-02-2025
- Business
- USA Today
Billabong, Quiksilver and Volcom stores to close in US after operator files for bankruptcy
Three popular surf, skateboarding and swimwear retailers will close their doors in the United States after their Costa Mesa, California-based operator filed for Chapter 11 bankruptcy. All Billabong, Quiksilver and Volcom stores will close in the U.S. after their operator, Liberated Brands LLC, filed for bankruptcy on Sunday in the U.S. District of Delaware. Liberated Brands has 124 retail locations across the country, which also include the brands: Spyder, RVCA, Roxy and Honolua. In a declaration supporting the bankruptcy, Todd Hymel, CEO of Liberated Brands, said, "Macroeconomic issues, including a rapid and dramatic rise in interest rates, persistent inflation, supply chain delays, a decline in customer demand well below the historical trendline, shifting consumer preferences, and substantial fixed costs placed significant pressure on Liberated's revenue and cost structure." 'The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,' Liberated Brands said in a statement sent to USA TODAY. Liberated owes $83 million in secured debt and $143 million in unsecured debt, according to Hymel's declaration. Secured debts involve borrowers who put up assets to serve as collateral for a loan, while unsecured debts accumulate when a borrower does not put up any security or assets often requiring creditors to file lawsuits to be repaid. Earn rewards on your spending: Best credit cards for shopping USA TODAY contacted Liberated Brands on Friday but has not received a response. Stores closing:Bargain Hunt is closing all locations after bankruptcy filing, going-out-of-business sale When will Billabong, Quiksilver and Volcom close? A pop-up on Billabong's, Quiksilver's and Volcom's U.S. websites notifies customers of the bankruptcy filing and informs them that they will no longer accept gift cards as a form of payment online or in-store after Feb. 16. It is unclear if the retail stores plan to close by Feb. 16., but a separate declaration supporting the bankruptcy said Liberated Brands had about $3.3 million of cash on hand on Monday, which would only support its operations for one week. The seven brands operated by Liberated may not be gone forever as the company announced that it is "transitioning its brand licenses to new license holders as part of a management transition to ensure continuity for the brands and their success moving forward," according to the company's statement. 'Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future," the statement continued. Until Libertated Brands enforces the closures of its more than 100 U.S. stores, the locations will "remain open and continue serving customers," according to the statement. Who owns Billabong, Quiksilver and Volcom? As a licensee, Liberated operated Billabong, Quiksilver, Volcom and the other four brands, which are owned by Authentic Brands Groups, a global brand development company. From 2019 to 2025, Liberated maintained the brands' operations across the world for Authentic, including in the U.S. and Canada, Hymel said in his declaration document. In a statement sent to USA TODAY, Authentic said, "All licenses that were held by Liberated were transitioned to new partners prior to the bankruptcy." 'Our industry is more competitive than ever, and throughout this process, we've remained focused on the wellbeing of our partners, providing support to our licensee, Liberated Brands as they evaluate their opportunity to reorganize their business and regain profitability. At Authentic, our primary responsibility is to our beloved brands and to their loyal fans and customers," the company's statement reads. "To that end, we've been working closely with Liberated Brands to thoughtfully transition key licenses to trusted operators within our network. Liberated's U.S. store fleet was overinflated, burdened with outdated and underperforming locations. As a result, physical U.S. based stores will likely be rationalized, allowing the brands to create more value and strengthen their presence across specialty retailers, department stores, and e-commerce—ensuring a more agile and resilient future.' What did Liberated do before filing for bankruptcy? As Liberated Brands "faced significant liquidity challenges in 2024," the company did try to stabilize the business, Hymel said in his declaration document. According to Hymel, the company tried to seek potential investments in the business from financial and strategic parties, as well as from its existing equity holders; explore a sale to sell the business; renegotiate leases with various landlords; implement a hiring freeze and strategic reduction in force; and negotiate payment plans with vendors. Liberated Brands' attempts to recover the business were unsuccessful, and by December 2024, the company's North American license rights for its wholesale operations under the Volcom, RVCA and Billabong brands were terminated, Hymel said.
NBC News
06-02-2025
- Business
- NBC News
All Quiksilver, Billabong and Volcom stores to close in U.S.
All Quiksilver, Billabong and Volcom stores will close in the U.S. after their operator filed for bankruptcy. Altogether over 100 stores for the brands, that sell apparel for skaters, surfers and snowboarders, will close their doors. Liberated Brands filed a voluntary petition for Chapter 11 bankruptcy protection on Sunday in Delaware bankruptcy court. 'The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,' Liberated Brands in a statement, according to Financier Worldwide. 'Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future.' Todd Hymel, the CEO of the Costa Mesa, California, based company, said in a declaration of support for the bankruptcy filing that a 'rapid and dramatic rise in interest rates,' inflation, supply chain delays, a decline in customer demand and shifting consumer preferences, cast 'significant pressure' on the operator. He noted that during Covid-19 pandemic the brands saw a boom in business. During that time, Liberated expanded its retail footprint rom 67 to 140 stores, Hymel wrote. However, as the pandemic ended and interest rates and inflation went up, customer demand weakened. The pandemic also saw an increased demand for online shopping, and led Liberated's brick-and-mortar retail footprint to impose 'a further drag on profitability.' Hymel also said consumer demand toward 'fast fashion' contributed to a decrease in profits. Fans of the labels won't have to fear, though, as parent company Authentic Brands Group said it will transition to another operator.
CNN
06-02-2025
- Business
- CNN
All Quiksilver, Billabong and Volcom stores will close in the US
Quiksilver, Billabong and Volcom, once a magnet for Millennials looking for surfer and skateboard-inspired clothing, are permanently closing all of their stores. More than 100 locations across the United States are shutting down in the coming weeks after their operator, Liberated Brands, filed for bankruptcy, blaming fast-fashion rivals and other economic factors for its financial struggles. Liberated has 'worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living and inflationary pressures have all taken a heavy toll,' the company said in a statement. In bankruptcy filings, CEO Todd Hymel said that a 'dramatic rise in interest rates, persistent inflation, supply chain delays' put 'significant pressure' on Liberated's cost and revenue, and laid some of the blame on fast fashion rivals that let shoppers 'cheaply, quickly, and easily order low-quality clothing garments,' while being able to more quickly adapt to micro-trends that brick-and-mortar companies are too slow to sell. Despite Liberated's demise and store closures, the three brands aren't disappearing. Authentic Brands Groups, the clothiers' parent company, is transitioning the licenses to another operator to keep making the clothes. Authentic said in a statement to CNN that the stores were 'overinflated' and 'burdened with outdated and underperforming locations,' and that the affected clothing lines will be sold at speciality retailers, department stores and online thus 'ensuring a more agile and resilient future.' The closures only add to a growing a list of retailers shuttering locations this year, including Kohl's and Macy's. In total, more than 15,000 stores are expected to close in 2025 — more than double the amount of last year, according to Coresight Research.
