Several beloved beachwear brands have gone out of business. The brick and mortar stores on Billabong, Quiksilver and Volcom are closed.
The California-based Liberation Brand, which operates its stores, will close all 124 locations after filing for Chapter 11 bankruptcy, including nine Florida stores.
According to USA Today, Liberated owes $83 million in secured debt and $143 million in unsecured debt. Protected liabilities include borrowers who list assets as collateral for the loan, but if the borrower does not establish security or assets that require them to file a lawsuit to repay the creditor, an unsecured obligation. will accumulate.
Chapter 11 What is Bankruptcy?
Chapter 11 bankruptcy is often referred to as “reorganization” bankruptcy, according to US courts.
“The debtor usually remains “owned,” and has the authority and duties of the trustee, and can continue to operate the business, and borrow new money with court approval.” The website says. “A plan for a reorganization is proposed and creditors whose affected rights are affected may vote for the plan and if a required vote is received and certain legal requirements are met, the plan will be made by the court. It may be confirmed.
Why do brands that have been released file for bankruptcy?
In its statement, the company highlighted consumer spending, inflation and the global economy as a whole for bankruptcy.
“Rapid and dramatic rise in interest rates, sustained inflation, delayed supply chains, reduced customer demand, customer demand far below historical trendlines, shifts in consumer preferences, and large fixed costs However, the company has put a lot of pressure on the revenue and cost structure of releases, including macroeconomic issues, said Todd Hymel, CEO of Liberated Brands, in its announcement.
Last year, the company tried to stabilize its business. They sought potential investments in the business from existing stockholders as well as financial and strategic parties.
Attempts to restore the business of the liberated brand have failed, and by December 2024, the company’s North American license rights for wholesale under the Volcom, RVCA and Billabong brands had been fired, Hymel said It states.
Where are Florida Quiksilver, Billabong and Volcom stores?
The statement said Libertated Brands will “continue to serve customers while still open” until it closes more than 100 US stores. These are nine shows.
Altamonte Springslake Buena Vistaellentonorlandowest Palm Beachsunrisemiramar Beachst. AugustineTampa
When will Billabong, Quiksilver and Volcom close?
Pop-ups on the US websites of Billabong, Quiksilver, and Volcom notify customers of bankruptcy filings and notify them that gift cards will no longer be accepted online or in-store after February 16th.
USA Today reports it is unclear whether retailers will close by February 16, but another declaration in favor of bankruptcy says the brand released on Monday was worth around $3.3 million. He said he has cash and only supports the operation for a week. .
Will the brands that have been released disappear forever?
It’s not completely clear yet. But there is hope.
The company announced that it will “transfer brand licenses to new license holders as part of the management transition to ensure brand continuity and its success,” according to the company’s statement.
“Despite this challenging change, many of our talented peers are encouraged to have found new opportunities with other licensees to bring these amazing brands into the future,” the statement continued. Ta.
Contributor: Jonathan Limehouse, USA Today
