Billabong, Quiksilver, and Volcom were once must-have brands. Now, their trendy days seem like a distant memory.
All three brands are licensed by Liberated Brands LLC. On Sunday, the company filed for bankruptcy in the U.S. District of Delaware, according to USA Today. Spyder, RVCA, Roxy, and Honolua are also under Liberated’s umbrella. The company operated 124 retail stores.
“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 customer preferences, and substantial fixed costs placed significant pressure on Liberated’s revenue and cost structure,” Liberated CEO Todd Hymel said in the filing, per USA Today.
The company said its team worked hard over the past year to save the brands. But the global economy, rising living costs, and inflation made it impossible. "A volatile global economy" and "consumer spending changes" hit them hard, they told USA Today.
Liberated owes $83 million in secured debt. On top of that, they have $143 million in unsecured debt.
USA Today reported that Billabong, Quiksilver, and Volcom have posted warnings on their websites. Gift cards won’t be accepted after Feb. 16. The filing said the company only has $3.3 million in cash left, which will last about a week. It’s unclear when the stores might close.
There is some hope for fans of these brands. USA Today said Liberated is working to transfer its licenses to new holders.
If that plan works out, Billabong, Quiksilver, and Volcom might not disappear after all.