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Regaining their “cool”: can the big three surf brands recover?

Journal Article


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Abstract


  • Australia’s “big three” surf brands have found themselves in choppy financial waters.

    Last week, Billabong, one of Australia’s most iconic surf brands confirmed a $386 million refinancing agreement with US consortium Centerbridge-Oaktree Capital Management acquiring a 40% share, guaranteeing the struggling brand’s short-term future after it posted an $859 million loss last financial year.

    Like Billabong, public surf company Quiksilver has reported declining revenues, asset write-downs and growing losses, recently announcing third-quarterly earnings had declined 84%. Privately-owned Rip Curl has also been in profit free-fall. In mid-2012 Rip Curl founders Brian Singer and Doug Warbrick engaged Bank of America Merrill Lynch to help source a prospective buyer for the brand. The planned sale was abandoned in March with a lack of interest at the asking price of $400 million.

    The current woes are a long way from the heady days of the 1990s and 2000s, which saw each of the big three surf brands aggressively pursue international expansion and high-profile sports sponsorship deals.

    So, why have the Big Three surf brands found themselves struggling? And what is the way to calmer waters?

Publication Date


  • 2013

Citation


  • Warren, A. (2013). Regaining their “cool”: can the big three surf brands recover?. The Conversation, 25 September 1-3.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=3457&context=sspapers

Ro Metadata Url


  • http://ro.uow.edu.au/sspapers/2456

Number Of Pages


  • 2

Start Page


  • 1

End Page


  • 3

Volume


  • 25 September

Place Of Publication


  • Australia

Abstract


  • Australia’s “big three” surf brands have found themselves in choppy financial waters.

    Last week, Billabong, one of Australia’s most iconic surf brands confirmed a $386 million refinancing agreement with US consortium Centerbridge-Oaktree Capital Management acquiring a 40% share, guaranteeing the struggling brand’s short-term future after it posted an $859 million loss last financial year.

    Like Billabong, public surf company Quiksilver has reported declining revenues, asset write-downs and growing losses, recently announcing third-quarterly earnings had declined 84%. Privately-owned Rip Curl has also been in profit free-fall. In mid-2012 Rip Curl founders Brian Singer and Doug Warbrick engaged Bank of America Merrill Lynch to help source a prospective buyer for the brand. The planned sale was abandoned in March with a lack of interest at the asking price of $400 million.

    The current woes are a long way from the heady days of the 1990s and 2000s, which saw each of the big three surf brands aggressively pursue international expansion and high-profile sports sponsorship deals.

    So, why have the Big Three surf brands found themselves struggling? And what is the way to calmer waters?

Publication Date


  • 2013

Citation


  • Warren, A. (2013). Regaining their “cool”: can the big three surf brands recover?. The Conversation, 25 September 1-3.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=3457&context=sspapers

Ro Metadata Url


  • http://ro.uow.edu.au/sspapers/2456

Number Of Pages


  • 2

Start Page


  • 1

End Page


  • 3

Volume


  • 25 September

Place Of Publication


  • Australia