All Quiksilver, Billabong and Volcom stores in the United States will close after their operator filed for bankruptcy protection.
Altogether over 100 stores for the brands, that sell apparel for skaters, surfers and snowboarders, will close their doors.
Liberated Brands filed a voluntary petition for Chapter 11 bankruptcy protection Sunday in U.S. Bankruptcy Court in Delaware.
“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 in a statement, according to Financier Worldwide. “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.”
Todd Hymel, the CEO of the Costa Mesa, California-based company, said in a declaration of support for the bankruptcy filing that a “rapid and dramatic rise in interest rates,” inflation, supply chain delays, a decline in customer demand and shifting consumer preferences cast “significant pressure” on the operator.
He noted that during Covid-19 pandemic the brands experienced a boom in business. During that time, Liberated expanded its retail footprint from 67 to 140 stores, Hymel wrote. However, as the pandemic ended and interest rates and inflation went up, customer demand weakened.
The pandemic also had increased demand for online shopping and led Liberated’s brick-and-mortar retail footprint to impose “a further drag on profitability.” Hymel also said consumer demand toward “fast fashion” contributed to a decrease in profits.
Fans of the labels won’t have to fear, though, as parent company Authentic Brands Group said it will transition to another operator.