Is Quiksilver Shopping for a Buyer?
Over the last few years, the beleaguered California surfwear company Quiksilver has been bleeding massive amounts of money.
What was once a high-flying, beach-oriented clothing and shoe company was so wealthy that it was snapping up brands such as the French winter sports equipment company Rossignol, which it bought in 2005 for $320 million and sold three years later for $147 million.
Last March, the Huntington Beach, Calif., company replaced its chief executive officer and its chief financial officer.
Now Bloomberg News is reporting that the company is looking for a buyer to help keep the company afloat. Quiksilver, the news organization said, is talking with potential strategic buyers with a goal of a management-led buyout of the publicly traded company.
Under a deal, Quiksilver hopes to keep its chain of 683 stores, factory outlets and shops-in-shops and avoid bankruptcy, the report said.
As surfwear has been eclipsed by more trendy yoga wear and athleisure styles, Quiksilver has suffered. Last year, the company had a net loss of $309.4 million on $1.57 billion in revenues. In 2013, its net loss was $232.56 million on $1.81 million in revenues.
In March, Quiksilver fired Andy Mooney as its chief executive officer and replaced him with 27-year Quiksilver veteran Pierre Agnes. At the same time, Chief Financial Officer Richard Shields lost his job to Thomas Chambolle.
In addition, Quiksilver cofounder Bob McKnight stepped in as chairman of the board, a position once held by Mooney.