MANUFACTURING
Quiksilver Announces Bankruptcy Exit
Surf giant Quiksilver Inc. plans to emerge from Chapter 11 bankruptcy by Feb. 8, it was announced on Jan. 28. The U.S. Bankruptcy Court for the District of Delaware confirmed the Huntington Beach, Calif.–headquartered company’s plans for reorganization. The bankruptcy was declared in September 2015.
Oaktree Capital Management L.P., a Los Angeles private-equity firm that now owns Quiksilver, will restructure $800 million in debt.
Pierre Agnes, Quicksilver’s chief executive officer, said that it was an achievement to emerge from bankruptcy in a matter of months.
“We will emerge as a revitalized and stronger company with experienced leadership, rationalized operations, a clean balance sheet and a world-class partner in Oaktree, who brings additional strategic and operational expertise to our company. The reorganization plan we have put in place provides us with the strong long-term financial foundation to fuel the success of our brands globally and positions us well to reassert our leadership position in the action-sports industry.”
As part of the reorganization plan, Oaktree will convert Quiksilver’s U.S. debt holdings into a majority of the stock reorganized by the company, according to a Quiksilver statement. In addition to the Quiksilver brand, the Huntington Beach–based company also owns action-sports brands Roxy and DC. The company’s European and Asian divisions were not affected by the bankruptcy.
