There Are Many Reasons Behind Quiksilver'S Bankruptcy.

Yesterday, the US surfer clothing brand Quiksilver filed for bankruptcy protection in accordance with the eleventh chapter of the United States. After giving up control, creditors oak capital will provide us $175 million for debt restructuring.

As of yesterday,

Liabilities are as high as $826 million and assets are only $337 million.

Since January this year, the share price has fallen by more than 80%.

However, the bankruptcy petition is only for the US, the Asia Pacific and European markets.

The rapid expansion did not lead to good results. After the first quarter of the acquisition, net profit fell sharply by 86.7%, mainly due to the warm winter in Europe and other places, which led retailers to lower prices and cancel new orders.

At the time, it was also speculated that the acquisition would make Quiksilver difficult to manage.

Since then, because of the impact of the leasing business, it has increased the original liabilities of $1 billion, and can only split up in 2007.

Quiksilver, founded in 1969 in Australia, was listed in the US in 1986.

In the early 90s and early twenty-first Century, it led the trend of water sports. At that time, it was on the same name as Billabong, PacificSunwear and other outdoor brands. It also had commercial cooperation with surfers KellySlater and TonyHawk, and sponsored surfing competitions all over the world.

As of April 30th this year, the brand has 700 stores in the world.

However, last year, the brand experienced a 13% decline in sales and a net loss of $309 million, which lost 79% of its market value in the US.

Among them

Most of the foreign media are interpreted as the rise of fast fashion brands, which provide younger people with cheaper and fashionable products and seize the market share of Quiksilver besides professional surfing equipment. This part of the market is the main source of brand profits. It also refers to the decline of skateboard sports, resulting in the overall reduction of consumers.

The reason that looks more reliable is that Quiksilver acquired France in July 2005.

Rossignol.

The takeover price was $305 million at that time, and the reason for the purchase was to extend the tentacles to the ice and snow campaign, which is one of the ambitions of the outdoor sports market, which contends for 47 billion dollars in total annual sales.

The company also sees greater business opportunities to expand the popular Quiksilver and Roxy clothing brands to the field of equipment, and will introduce more fashionable Rossignol brand ski jackets, ski pants and accessories.