Surf Fashion Tsunami: Iconic Brands Billabong and Quiksilver Wipe Out in Bankruptcy Shocker!

Hold onto your beach hats! The waves of the fashion world are crashing as a major player in surf brands wipes out. Brace yourself for the tsunami of change as Liberated Brands, the powerhouse behind Billabong, Roxy, Quiksilver, and Volcom, takes a dramatic tumble into bankruptcy.

In an unexpected twist, Yahoo Finance reveals that Liberated has filed for Chapter 11 in Delaware. What’s the catch? A jaw-dropping closure of 120 stores across the U.S. and Canada, leaving over 1,400 employees high and dry. Read more here.

CEO Todd Hymel spills the tea, blaming the downfall on sky-high U.S. interest rates and the cutthroat competition from online giants like Shein and Temu. According to Hymel, today's shoppers are ditching discretionary buys for fast fashion, which they can snag dirt cheap and have in their hands in no time.

But that's not all—the shock waves reach loyal customers as messages blast across Billabong and Quiksilver websites. The bad news? Say goodbye to those gift cards and loyalty points, as they’re worth zilch after February 16. Fortunately, New Yorkers can breathe easy, as none of the shuttered stores are in their state. Yet, the fate of 18 Billabong and 13 Quiksilver stores Down Under remains as murky as a stormy sea.

The drama unfolds as Authentic Brands, the New York firm lending these iconic names to Liberated, swoops in. Their mission? To find new allies to keep your favorite surf styles afloat. According to Bloomberg, Authentic didn't hesitate to cut ties with Liberated after they missed a royalty payout.

Libertated's ride from the top was a wild one. MSN reports that Quiksilver, born in 1969, rose to fame with groundbreaking velcro boardshorts. Meanwhile, Billabong, a ‘73 surf-wear sensation, became an Aussie icon for long-lasting beachwear, until both faced financial storms and merged in 2018.

The plot thickens with Yahoo Finance spilling financial secrets—the company's cash flow swelled during the pandemic, hitting a whopping $422 million in revenue. Yet, for every wave, there's a crash; court documents disclose a whopping $100 million in liabilities! Faced with this financial wipeout, they turned to JPMorgan Chase for a $35 million lifeline to navigate the choppy bankruptcy waters.

Stay tuned, surf enthusiasts, as this suspenseful saga of waves, brands, and bankruptcy unfolds!