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Liberated Brands' bankruptcy shakes up major surf brands

Liberated Brands: the fast and large expansion of physical stores did not go as expected | Photo: Liberated Brands

Costa Mesa-based Liberated Brands, the company behind North American retail and wholesale operations for major surf brands like Billabong, Quiksilver, Volcom, Roxy, Captain Fin, Honolua, and RVCA, has filed for Chapter 11 bankruptcy.

The filing, submitted Sunday night in the U.S. Bankruptcy Court for the District of Delaware., follows financial struggles linked to rapid expansion, economic pressures, and a challenging market.

Company documents estimate that Liberated Brands' assets and liabilities range between $100 million and $500 million.

Over the past few years, the company expanded quickly by taking on additional brand licenses under owner Authentic Brands Group (ABG) and increasing its number of retail locations.

However, rising interest rates, inflation, supply chain delays, and a shift in consumer habits toward fast fashion have all taken a heavy toll.

The burden of too many physical stores - many of which were outdated or underperforming - has further strained the business.

By December 2024, ABG withdrew its licenses, citing Liberated's inability to invest in the brands.

Impact on Surf Brands

Authentic Brands Group, which acquired the former Boardriders portfolio - featuring Billabong, Quiksilver, RVCA, DC Shoes, Roxy, Element, and others - in September 2023, initially granted Liberated Brands a substantial part of this collection under a licensing deal.

The arrangement included:

  • A wholesale license in the U.S. and Canada for Billabong, RVCA, and Honolua, covering categories like adult sportswear, activewear, swimwear, outerwear, headwear, and base layers;
  • Retail and e-commerce rights in the U.S. and Canada for Quiksilver, Billabong, Roxy, RVCA, Honolua, and Boardriders;
  • A broad license covering wholesale, retail, and online sales in Australia, New Zealand, Thailand, and Indonesia for brands such as Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element, VonZipper, Honolua, and more, which included over 200 retail locations;
  • The North American license for wetsuits under the Quiksilver, Billabong, Roxy, and RVCA names;

It is important to note that bankruptcy does not necessarily affect the future of these surf brands.

The labels, including Billabong, Quiksilver, RVCA, DC Shoes, Roxy, and Element, remain owned by Authentic Brands Group.

Over the past few months, Authentic has been working to shift these licenses to new wholesale partners.

For instance, O5 Apparel has taken over the Quiksilver and Billabong wholesale licenses; The Levy Group now handles Roxy and Volcom, and Quetico Lifestyle Brands - through its offshoot Ethos Brands - is the new home for RVCA.

These moves are part of a strategy to support the brand's long-term growth with operators with the resources to invest in them.

Liberated Brands: the company operated several top licenses from the Authentic Brands Group

Store Closures and Liquidation Sales

In addition to its licensing troubles, Liberated Brands is winding down its retail operations.

The company runs over 100 stores in the United States, and many of these locations have already begun liquidation sales, offering discounts of up to 60 percent off.

The liquidation process, managed by Gordon Brothers Group, is part of the company's effort to close its U.S. retail locations in an orderly manner.

Internationally, Liberated seeks buyers for its remaining operations in Australia, New Zealand, and Southeast Asia.

As the stores shut down, employees and local communities are facing the direct impacts of the closure.

Liberated laid off over 1,400 employees, including 363 at its Costa Mesa headquarters.

The company stated, "Many associates have found new opportunities with other license holders," ensuring continuity for the brands.

The bankruptcy highlights the turbulent retail landscape, where traditional brands adapt to compete with fast fashion and online trends.

For surf enthusiasts, the iconic labels remain available - just under new management.


Words by Luís MP | Founder of SurferToday.com



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