Surfwear company Quiksilver has filed for Chapter 11 bankruptcy protection for its US division, according to media reports. It plans to continue with an ongoing store-closing plan in the Americas.
The company based in Huntington Beach, California,said that its European and Asia-Pacific businesses are going strong and are not part of the bankruptcy filing.Surfwear company Quiksilver has filed for Chapter 11 bankruptcy protection for its US division, according to media reports. It plans to continue with#
"After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver," said CEO Pierre Agnes in a statement.
Quiksilver Inc. listed assets of more than $100 million and liabilities of more than $500 million in the filing.
Chapter 11 bankruptcy allows a company to continue operating while it executes a reorganization plan. Quicksilver asked the court to allow Oaktree Management to provide more than $175 million in financing for the company as part of the "debtor-in-possession" plan.
The brand, founded in 1969 in Australia, rode America's fascination with the surfer lifestyle to become a retail powerhouse. After a golden decade in the 1990s, Quiksilver has faced rising competition, particularly in the US and strategic blunders took their toll on the company. (SH)
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