All Quiksilver, Billabong, and Volcom stores in the United States will shut down as their operator filed for bankruptcy. A total of over 100 stores for these brands, which specialize in apparel for skaters, surfers, and snowboarders, are set to close their doors. Liberated Brands filed a voluntary petition for Chapter 11 bankruptcy protection on Sunday in the Delaware bankruptcy court.
“The Liberated team has put in immense effort over the past year to drive these iconic brands forward, however, the unpredictable global economy, changes in consumer spending patterns due to increasing living costs, and inflationary pressures have collectively dealt a severe blow,” stated Liberated Brands according to Financier Worldwide. “Despite this challenging transition, we are heartened to see that many of our skilled employees have secured new opportunities with other license holders who will continue to carry these renowned brands into the future.”
Todd Hymel, the CEO of the California-based company located in Costa Mesa, expressed his support for the bankruptcy filing, citing a “sharp and sudden surge in interest rates,” inflation, delays in the supply chain, a decrease in customer demand, and evolving consumer preferences as factors that exerted “significant pressure” on the operator.
Hymel highlighted that during the Covid-19 pandemic, the brands experienced a surge in business. Liberated, during that period, expanded its retail presence from 67 to 140 stores. However, as the pandemic waned and interest rates and inflation climbed, customer demand dwindled.
The pandemic also ushered in a heightened demand for online shopping, resulting in Liberated’s physical retail presence becoming “an additional drag on profitability.” Hymel also pointed out that a shift in consumer demand towards “fast fashion” contributed to a decline in profits.
However, fans of these popular labels need not fret as the parent company, Authentic Brands Group, assured that they would transition to a new operator.
