LOS ANGELES: Liberated Brands, the parent company of Quicksilver, Billabong, and Volcom, has filed for Chapter 11 bankruptcy, leading to the nationwide closure of more than 120 surf retail stores. The closures are part of the company’s effort to restructure amid rising debt and financial struggles.
Reasons Behind the Bankruptcy
Liberated CEO Todd Hymel cited multiple challenges in a 29-page statement filed as part of the bankruptcy proceedings. Among the key factors:
- Rising interest rates
- Persistent inflation
- Supply chain delays
- Decline in consumer demand
- Shifting consumer preferences
- Substantial fixed costs
The company is facing $226 million in debt, which has resulted in the layoff of approximately 1,400 employees.
Changing Retail Trends
Hymel highlighted the shift in consumer behavior as a major contributor to the company’s struggles:
“The Company has been further challenged by trends impacting the retail environment more broadly, including shifting consumer preferences for ‘fast fashion’ and e-commerce as opposed to branded apparel and brick-and-mortar retail,” Hymel wrote.
While profits increased during the COVID-19 pandemic due to a spike in demand for outdoor apparel and online shopping, in-store shopping never fully recovered, leading to declining revenue from physical retail locations.
The Impact on Employees and Stores
- More than 120 store closures: Affecting locations nationwide
- 1,400 employees laid off as part of cost-cutting measures
- The brands will continue producing clothing despite the store closures
A Shift Away from Traditional Retail
The brands Quicksilver, Billabong, and Volcom, which have long been rooted in surf, snow, and skate culture, are facing pressure from competitors and changing consumer preferences favoring online shopping and fast fashion.
Despite the closures, the company plans to maintain its presence online and continue selling its products through e-commerce platforms and third-party retailers.
As Liberated Brands works through its bankruptcy proceedings, it aims to refocus on digital sales and core products while adapting to new retail dynamics.
For customers and communities that grew up with these iconic surf brands, the closures mark the end of an era, but the company’s ongoing production efforts signal that Quicksilver, Billabong, and Volcom aren’t disappearing entirely.
