The business holds the licences for Australian surf brands Roxy, Billabong and Quiksilver has filed for bankruptcy in the US.
Liberated Brands has filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code, the company confirmed in a statement.
The company will close over 100 of its retail locations in the US and nine stores in Hawaii remain under review.
Liberated said the company is in the “process of transitioning its brand licences to new licence holders” to ensure continuity of the Aussie-owned brands in the US.
“The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living and inflationary pressures have all taken a heavy toll,” Liberated Brands said in a statement.
“Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future.”
US licensor Authentic Brands, which licensed the surf brands to Liberated in 2023, said the bankruptcy will not impact the brand’s future in the US and new partners would be found to make and sell the products.
Liberated also closed its corporate offices and laid off nearly 1400 workers, US Bloomberg reported.
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Sales had slowed after a mid-COVID spike and there was a sharp decline in demand due to the rise of fast fashion brands, chief executive Todd Hymel said in a court filing.
“Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have such goods delivered within days,” Hymel said.
It remains unknown if Australian distributors of the iconic brands will be impacted.
There are 18 Billabong stores and 13 Quiksilver stores across Australia.
Quicksilver sells its sister brand Roxy in stores too.
Authentic announced in 2023 that Liberated Brands would take control of operations of the Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element and VonZipper stores across Australia, New Zealand, Thailand and Indonesia.
Billabong was originated on Queensland’s Gold Coast in 1973, while Quiksilver was founded in 1969 in Torquay, Victoria.
Sister brand Roxy debuted in 1990, originally selling women’s swimwear.
9news.com.au has contacted Liberated Brands and City Beach, which re-sells the surf brand in Australia, for comment.
