Action sports retailer Liberated Brands, known for carrying brands like Quiksilver, Billabong, and Volcom, has filed for Chapter 11 bankruptcy protection and is shutting down all of its U.S. retail locations. The company cited macroeconomic challenges and underperforming stores as contributing factors to its financial difficulties.
Liberated Brands, a major retailer specializing in action sports and lifestyle apparel, filed for Chapter 11 bankruptcy protection over the weekend. The company announced its intention to close all of its U.S. retail stores, which carried popular brands like Quiksilver, Billabong, Volcom , Roxy, and RVCA. In a press release issued on Monday, Liberated explained that the bankruptcy filing was a strategic move to 'implement an orderly monetization and disposition of its businesses.
' The company filed a motion with the U.S. Bankruptcy Court for the District of Delaware to shut down approximately 124 stores as part of its restructuring plan. Liberated estimated its assets to be between $100 million and $500 million in its Chapter 11 petition, with liabilities projected to be in the same range. The company assured customers that its U.S. stores would remain operational while it navigates the closure process, though they will eventually cease operations once the liquidation sale is completed. The status of Liberated's nine retail locations in Hawaii is currently under negotiation. CEO Todd Hymel cited several macroeconomic factors contributing to the company's financial distress in a court filing. He pointed to a rapid rise in interest rates, persistent inflation, supply chain bottlenecks, a decline in consumer demand that significantly undershot historical trends, shifting consumer preferences, and substantial fixed costs as significant burdens on Liberated's operations.Hymel also revealed that Liberated had acquired licenses for Quiksilver, Billabong, Roxy, RVCA, and some other Authentic Brands-owned brands in late 2023, in addition to its existing license for Volcom. However, licenses for Volcom, RVCA, and Billabong in North America were terminated in December of the previous year due to Liberated's default under the respective agreements, according to the CEO. Court documents indicate that these licenses have been transferred to new operators, ensuring that customers can still access these clothing brands. David Brooks, executive vice president at Authentic Brands, stated in a comment to FOX Business that 'on the rare occasion that a partner is not able to fulfill its commitments, Authentic will transition the license.' He emphasized that Authentic Brands has been actively collaborating with Liberated Brands to 'thoughtfully transition key licenses to trusted operators within our network.' Brooks further stated that Liberated's U.S. store network 'was overinflated, burdened with outdated and underperforming locations' and would 'likely be rationalized, allowing the brands to create more value and strengthen their presence across specialty retailers, department stores, and e-commerce–ensuring a more agile and resilient future.'
BANKRUPTCY RETAIL LIBERATED BRANDS QUIKSILVER BILLABONG VOLCOM BANKRUPTCY FILING U.S. STORES LIQUIDATION SALE
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