Billabong, Quiksilver Stores Closing After Bankruptcy

All locations for Billabong, Quiksilver, Volcom and more are set to close after parent company Liberated Brands filed for Chapter 11 bankruptcy protection, NBC News reported. More than 100 apparel stores across Liberated’s brand portfolio will close as a result of its voluntary bankruptcy petition.

Authentic Brands Group, the parent company of Liberated, will transfer operations of the impacted brands to another operator.

In a statement, Liberated blamed a host of issues for its bankruptcy, including “a volatile global economy, consumer spending changes amid a rising cost of living and inflationary pressures.” Chief executive officer Todd Hymel sounded a similar refrain in a bankruptcy filing, pointing towards interest rates, inflation, supply chain issues and a decline in demand from customers.

It also appears Liberated may have grown too quickly at the beginning of the pandemic, when outdoor sports activities like the ones the company’s brands support — surfing, skating, etc. — surged in popularity. The company more than doubled its footprint from 67 to 140 stores since the start of the pandemic, according to Hymel.

Liberated’s bankruptcy is the third major one to hit the retail industry in the first few weeks of the new year. Other significant bankruptcy filings have included Bargain Hunt and Jo-Ann Stores.

Bargain Hunt filed for Chapter 11 bankruptcy protection last week, according to Retail Dive. Going-out-of-business sales immediately commenced at all of its 92 stores.

Approximately 15,000 retail stores across the country are expected to close this year, according to a recent report by Coresight Research. Store closures totaled more than 7,300 last year — the highest volume in four years — meaning this year could double that amount if Coresight’s prediction holds true.

It is predicting roughly 5,800 store openings.

— Holden Walter-Warner