Some iconic surf shops are permanently closing more than 100 stores in the US due to their operator, Liberated Brands, filing for bankruptcy.
KTLA’s David Lazarus reported that Liberated Brands blames the bankruptcy on fast-fashion competition and an “uncertain economy.”
The brands that will be closing their doors include Billabong, Quiksilver and Volcom.
In addition to store closures, Fortune reported that Liberated Brands listed a debt of $226 million and laid off about 1,400 employees as part of its shutdown.
“The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,” Liberated Brands said in a statement published by Shop Eat Surf Outdoor. “Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future.”
However, Lazarus reported that the surfer brands might not be going away.
“The owner of the brands, a company called Authentic Brands, says it’s looking for a new operator to bring these brands back to the marketplace, but don’t expect to see them as mall staples anytime soon,” Lazarus said. “Authentic says it’ll mix it up a little bit and instead go for specialty stores, department stores, and, of course, focus on online sales.”
According to a CNN report, Authentic provided a statement saying the stores were “overinflated” and “burdened with outdated and underperforming locations.”
CNN’s story said that redirecting to specialty retailers, department stores and online will ensure “a more agile and resilient future” for the brands.
