Liberated Brands, the parent company of well-known surfer and skater-inspired labels like Quiksilver, Billabong, and Volcom, has filed for Chapter 11 bankruptcy protection. The California-based company announced plans to close all 124 of its U.S. stores and lay off nearly 1,400 employees as it winds down its North American operations. This decision comes after the company struggled with a series of macroeconomic challenges, including rising interest rates, persistent inflation, and supply chain disruptions.
These are the headlines that are making big news in the surf industry right now and might be reason for concern for our own SUP – Wing and Foil Industry. So far we had no bankruptcies in our industry. The only big news we had last year was when Fanatic announce their retreat from SUP Racing. For the surf clothing industry things are a bit different:
Despite a surge in demand for outdoor and leisure apparel during the COVID-19 pandemic, Liberated Brands faced declining profits due to increased competition from fast fashion brands and shifting consumer preferences. The company cited changes in consumer spending habits amid a rising cost of living and inflationary pressures as significant factors that impacted their revenue.
The liquidation sale process is already underway, with more than 100 stores set to close. While Liberated Brands is closing its U.S. stores, popular brands like Quiksilver, Billabong, and Volcom will continue to exist. These brands are owned by Authentic Brands Group, which has transitioned the licenses previously held by Liberated to new partners.
The company’s CEO, Todd Hymel, highlighted the combination of macroeconomic shocks and substantial fixed costs as key reasons for the financial pressure that led to the bankruptcy filing. Despite the efforts of the Liberated team to propel these iconic brands forward, the volatile global economy and changes in consumer behavior proved too challenging to overcome.
As far as the SUP, Wing and Foil industry goes, we are not that far and are not anticipating bankruptcies or at least strongly hope so. If anything, the word at the boot show was that many smaller OEM labels are under high pressure. So far we at the Stand Up Magazin have not heard of any brand closures but news like the one coming out of the US has us on high alert and made us once again aware that our industry is not out of the woods quite yet.