Liberated Brands files for bankruptcy, set to close all stores in U.S. and Canada

The recent bankruptcy filing of Liberated Brands, the U.S. operator of iconic surfwear labels Quiksilver, Billabong, and Volcom, has led to the closure of over 120 stores across the United States and Canada. This development has raised concerns among Australian consumers about the potential impact on local operations of these beloved brands.

Authentic Brands Group expresses intent to continue global presence

Despite the upheaval in North America, the Australian branches of Quiksilver and Billabong are expected to continue business as usual. Reports indicate that the financial troubles of Liberated Brands are confined to its U.S. operations and do not extend to the Australian market. Consequently, the 18 Billabong stores and 13 Quiksilver outlets across Australia are not slated for closure.

Authentic Brands Group (ABG), the owner of these surfwear brands, has expressed intentions to maintain their global presence. ABG plans to identify new partners to manage and distribute Quiksilver, Billabong, and Volcom products, ensuring that consumers worldwide, including those in Australia, continue to have access to their favourite surfwear apparel.

Insights from Industry Experts Identify Market Volatility as a Major Contributor

The U.S. court documents attribute the decline in market returns on the aggressive expansion of new stores in the post-covid economy, which became a liability once inflation rose and disposable income dried up in the region.

In the bankruptcy filings, Liberated Brands stated that its assets and liabilities range between $100m and $500m, while its listed creditors have unsecured claims ranging between $500m and $3.2b.

Australian entrepreneur Dick Smith commented on the situation, suggesting that aggressive expansion and the volatile global economy may have contributed to the financial difficulties faced by Liberated Brands in the U.S. However, he emphasized that these challenges are specific to the U.S. operations and should not impact the brands' performance in Australia.