Sponsors
Billabong ▲ +0.010 | PPR ▲ +0.80 | American Apparel ▲ +0.07 | The Buckle ▼ -0.99 | Columbia ▼ -0.38 | Deckers Outdoor ▼ -1.94 | Dicks ▼ -0.92 | Foot Locker ▼ -4.02 | Genesco ▼ -3.05 | Iconix Brand Group ▼ -2.52 | Jarden Corp ▼ -0.17 | Nordstrom ▼ -0.42 | Luxottica ▲ +0.45 | Nike ▼ -2.24 | Pacific Sunwear ▼ -0.05 | Skullcandy ▼ -0.04 | Sport Chalet - 0 | Urban Outfitters ▼ -0.15 | VF Corp ▼ -1.17 | Quiksilver ▲ +0.46 | Zumiez ▼ -0.62 | Macys ▼ -1.48 | Tillys ▲ +0.15 |
Ticker Sponsor
Readers Say
The one, undisputed leader
The one, undisputed leader

It is common knowledge in our industry that there is one undisputed leader in reporting on the topics, businesses and trends that impact all of us the most, and it is shop-eat-surf.com. Their access to those who make our industry happen is second to none, and we value not only the content of their reporting but the editorial thought on what it all means both in the present as well as the future. If we were asked to give a rating, it would be five out of five stars.

- By Craig Levra, CEO, Sport Chalet
Always a good daily read
Always a good daily read

Shop-Eat-Surf creates a good source of timely information about the industry. The site makes all types and size companies feel part of a community where everyone is stoked to hear about other companies successes and ideas. It is always a good daily read.

- By Ted Li, VP of North America, Oakley
Industry Insight

AGENDA: GroupY's Emerge brand-building conference returns on Jan. 6.
SURFRIDER: "Protect What You Love" holiday appeal.
MOSS ADAMS: Plan now for tax season.
Details on Industry Insight.


Tiffany Montgomery
Print This Article

Billabong says total sale off, possible asset sale on

By Tiffany Montgomery
June 03, 2013 5:39 PM

 

Billabong announced this afternoon that negotiations to sell all of the company have ended without a deal, but that it is still in talks with Sycamore Partners and Altamont Capital Partners about refinancing its capital structure and selling pieces of the company.

The aim of the potential refinancing and sale of assets is to pay off the company’s existing debt obligations and to be in a better position to implement its transformation plan, Billabong said in a release.

Neither party has been granted an exclusivity period for the potential transactions, and both have submitted proposals.

While the talks continue, Billabong said it is aggressively moving to cut costs around the globe. I am getting reports about layoffs today at the company.

Billabong also said it would ask to have trading in its stock restarted. The stock has not been traded while sale discussions were ongoing. It last traded at 45 cents.

A company spokesman said in an interview that this latest development means Billabong will remain a publicly listed company in Australia, that shareholder's will not be asked to pay for a new equity raising, and the same two parties are still interested in being involved with Billabong, even though a change of control will not happen.

Billabong is also focused on completing a final deal as soon as possible, the spokesman said.

Earnings guidance lowered

The company also lowered its earnings guidance again, citing weakness in Australian retail, and higher than expected losses from launching online retailer SurfStitch in Europe.

In Australia, retail comps year-to-date are 5.4% below the same period last year, while the wholesale division is on plan.

Americas is slightly above plan, and the Europe region remains weak.

Billabong lowered its EBITDA guidance to a range of AUD $67 million to AUD $74 million, excluding special items and Nixon. Previously, the company had expected EBITDA of AUD $74 million to AUD $81 million.

West 49

The company also confirmed it is exploring the sale of Canadian retail chain West 49, which Shop-eat-surf reported last week.

See Page 2 for the official press release

 

Previous 1 2 Next

Articles You Might Have Missed