Liberated Brands filed for Chapter 11 bankruptcy protection over the weekend and is looking to shutter its U.S. retail stores where it sold brands like Quiksilver, Billabong and Volcom.
The company said in a Monday press release that it filed for bankruptcy to “implement an orderly monetization and disposition of its businesses.” It submitted a motion to the U.S. Bankruptcy Court for the District of Delaware for the closure of about 124 stores as part of its bankruptcy proceedings.
Liberated estimated a range of $100 million to $500 million for its assets in its Chapter 11 bankruptcy petition. Estimated liabilities were the same.
The company said its U.S. stores will stay open “as the company begins its efforts to effectuate the close of its U.S. retail locations” but will ultimately shutter once their liquidation sale process is completed. Liberated also has nine locations in Hawaii, whose statuses are “currently being negotiated,” according to the release.
CEO Todd Hymel said in a court filing that “macroeconomic issues, including a rapid and dramatic rise in interest rates, persistent inflation, supply chain delays, a decline in customer demand well below the historical trendline, shifting consumer preferences, and substantial fixed costs” had weighed heavily on the company’s finances.
Liberated held the licenses for Quiksilver, Billabong, Roxy, RVCA and some other Authentic Brands-ownedbrands since late 2023, adding to the one it already had for Volcom, Hymel said in a filing. The licenses for Liberated to operate Volcom, RVCA and Billabong in North America were terminated in December of last year “as a result of Liberated’s default under the associated licenses,” according to Liberated’s CEO.
Court filings indicated those licenses have been transferred to new operators, meaning consumers will still be able to get those clothing brands.
“On the rare occasion that a partner is not able to fulfill its commitments, Authentic will transition the license,” David Brooks, executive vice president at Authentic Brands, said in a statement to FOX Business. “To that end, we’ve been working closely with Liberated Brands to thoughtfully transition key licenses to trusted operators within our network.”
Brooks said Liberated’s U.S. store fleet “was overinflated, burdened with outdated and underperforming locations” and would “likely be rationalized, allowing the brands to create more value and strengthen their presence across specialty retailers, department stores, and e-commerce–ensuring a more agile and resilient future.”
Liberated said the liquidation sale process for its U.S. stores has already begun.
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