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Another aughts-era mall brand is in trouble. Bloomberg reports that California-based surfwear company Quiksilver just filed for bankruptcy. Quiksilver lost nearly 80% of its market value this past year, as teens gravitated to H&M and other fast fashion chains. The brand's sales declined by 13% last year, Bloomberg reports, and Quiksilver listed total debts of $826 million and assets of $337 million in its bankruptcy filing.
Quiksilver plans to hand over control to private equity firm Oaktree Capital Management LP, which will provide Quiksilver with the $175 million financing it needs to get through a restructuring. Oaktree Capital is a major shareholder in another leading surf and outdoor brand, Billabong International, according to The Australian.
Quiksilver was founded in 1969. Major milestones include the launch of its sister womenswear brand, Roxy, in 1990 and the acquisition of DC Shoes in 2004. Quiksilver has around 700 locations, the OC Register reports. The company’s European and Asian operations aren’t affected by the bankruptcy, and according to Bloomberg, more than half of Quiksilver's sales come from outside the US.
Quiksilver CEO Pierre Agnes said in a statement about the Chapter 11 bankruptcy, "Oaktree’s financial strength and expertise, deep experience working with companies in situations similar to ours, and successful history operating in our industry make them an exceptional partner for us going forward. We value our wholesale customers as well as our vendors and suppliers and appreciate their support through this process. In addition, we thank our passionate and dedicated employees and athletes who remain our greatest assets. Quiksilver is, and as a result of this process will continue to be, an iconic leader in the action sports market."