Quiksilver will keep riding.
The California surfwear and skatewear retail chain yesterday won court approval to exit from Chapter 11 protection.
The beleaguered firm — which has 723-owned stores and owns the Quicksilver, Roxy and DC Shoes brands — is expected to restructure more than $600 million in debt, which could have the firm emerging from bankruptcy early next month.
The company, which sought bankruptcy protection in September, began its tournaround plan in 2013 when it focused on “strengthening its brands, growing sales and improving operational efficiencies. The new strategy was designed to focus the company on its three core brands, globalize key functions and reduce cost structure.”
Since then, it sold Mervin Manufacturing Inc., a manufacturer of snowboards and related products, for $58 million in 2013. And in 2014, it shed non-core brands and sold off Hawk Designs, a subsidiary that owned and operated the Hawk brand, for $19 million. Also that year, it sold its 51 percent stake in Surfdome, netting about $16 million.
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The Huntington Beach, Calif.-based company, founded in 1976, struggled in recent years after the 2008 recession, as consumer spending slowed and the fast-fashion retail landscape became more competitive.
At the end of its last fiscal year, the company, which has about 5,700 employees globally, posted a loss for the fifth consecutive year.
Quiksilver’s plan sponsor is Oaktree Capital Management.
