More than 100 stores under the Quiksilver, Billabong and Volcom brands are set to shut their doors across the U.S.
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The skater, snowboarder and surfer-oriented apparel stores are closing because California-based operator Liberated Brands has filed for Chapter 11 bankruptcy protection, NBC News reported.
Liberated Brands was in charge of retail and e-commerce operations in the U.S. and Canada for a portfolio of apparel stores that also included Roxy, Honolua Surf and Boardriders through a licensing agreement with parent company Authentic Brands Group, Retail Dive reported.
Inflation, supply chain delays, declining customer demand, changing consumer preferences and the rise in interest rates created “significant pressure” for the operator, Liberated Brands CEO Todd Hymel said in a statement supporting the bankruptcy filing.
Liberated Brands expanded its retail footprint during the pandemic, roughly doubling its stores from 67 to 140, thanks to a boom in demand. But the ensuing increase in interest rates and inflation resulted in lower demand from customers, Hymel said.
The new stores also added a “further drag on profitability” as more consumers opted to make purchases online during the pandemic. He also said that fast fashion ate into the profit margins for the stores.
Liberated Brands has assets and liabilities each in the range of $100M to $500M, with $3.3M cash on hand and $226M in debt, Financier Worldwide reported. Funds will be available to unsecured creditors, which include a range of overseas textile manufacturers, according to the filing.
Quiksilver, Billabong and Volcom will be transferred to a new operator, parent Authentic Brands Group said.
“The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,” Liberated Brands said in a statement reported by Financier Worldwide.
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