Billabong’s stock price declined more than 26% to 53 cents Wednesday in Australia after the company announced it was in exclusive talks to sell the company for 60 cents per share.

New reports in Australia are very focused on the fact that the price per share offer values the company at A$287 million, which is less than the A$289 million value put on its inventory of clothes and accessories as on Dec. 31, according to Bloomberg.

However, others have pointed out that new owners would also be taking on Billabong’s debt – A$152 million of net debt at the end of December, its long-term liabilities, and extensive retail lease obligations.

Billabong has stressed that there is no guarantee that the deal will go through.

Sycamore Partners and former Americas President Paul Naude have entered an exclusive 10-day negotiation period with Billabong, meaning VF Corp. is no longer involved in the bidding process.