Iconic surf brand Quiksilver has filed for bankruptcy with a plan to hand control over to lender Oaktree Capital Management LP. The Huntington Beach company also said it would be cutting 80 jobs.
Under a plan announced Tuesday, affiliates of Oaktree Capital Management LP will supply the chain with the $175 million financing it needs to get through a restructuring. At the conclusion of that process, Oaktree will exchange its debt claim for a majority stake in a reorganized Quiksilver. The plan requires bankruptcy court approval.
An email last week from company president Greg Healy called the job cuts at its Huntington Beach headquarters a “difficult decision.”
“Shortly after our new leadership team was appointed back in March, we initiated a comprehensive evaluation of the entire organization and began to develop a plan to best position Quiksilver for profitable growth over the long-term,” the email said.
The email also stated there was “positive news” because “our brands are strong and continue to resonate with our customers.”
Healy, in the email, said the company would continue to address its U.S. cost structure.
Quiksilver lost more than three-quarters of its value this year and started looking for a buyer this month, according to Bloomberg News.
Quiksilver was founded in 1969 and in 1990 launched its sister brand, Roxy. In 2004, it acquired DC Shoes. Quiksilver has around 700 locations.
