A dramatic shake-up rocks the surf and skate industry as iconic brands from the 1990s prepare for major restructuring.
According to Daily Mail, Liberated Brands, the company managing popular labels Billabong, Quiksilver, and Volcom, has filed for bankruptcy and will close all 120 stores across the United States and Canada.
The company's downfall marks a significant shift in consumer preferences, with shoppers increasingly turning to fast-fashion alternatives like Shein and Temu. This development affects multiple beloved brands that dominated surf and skate culture during their peak in the 1980s and 1990s, including Roxy, RVCA, and Spyder, all under the Authentic Brands Group umbrella.
The roots of these iconic brands trace back to Australia, with Billabong's founding in 1973 by Gordon and Rena Merchant on the Gold Coast and Quiksilver's establishment in 1969. Both brands revolutionized surf wear, with Quiksilver introducing innovative features like Velcro-fastened boardshorts and establishing high-profile athlete sponsorships.
California-based Volcom, founded in 1991, carved its niche in surf, skate, and snow culture with its distinctive 'Youth Against Establishment' philosophy. The brand's identity resonated strongly with alternative sports enthusiasts and youth culture throughout the 1990s.
The trouble began before Christmas when Liberated Brands failed to meet license fee payments. This led to Authentic Brands Group initiating the transfer of key licenses to new companies in December, culminating in Liberated's Chapter 11 filing in Delaware on Sunday.
Liberated Brands' trajectory shows a remarkable rise and fall since its 2019 formation following Volcom's management's sale to Authentic. The company experienced significant growth during the pandemic, with revenue increasing from $350 million in 2021 to $422 million in 2022.
CEO Todd Hymel explained in court filings the dramatic shift in consumer behavior that contributed to the company's decline.
The average consumer has shifted their spending away from discretionary products such as those offered by Liberated. Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have such goods delivered within days.
The bankruptcy process will be supported by JPMorgan Chase, which has provided $35 million in financing to facilitate store liquidations and legal proceedings. The company plans to offer discounts of up to 60 percent during its closing sales.
The surfwear brands' struggles reflect a broader trend in retail, with over 7,300 store closures reported by mid-December, marking a nearly 60 percent increase from 2023. Major retailers like Macy's have announced significant downsizing plans, with 150 stores set to close over three years.
This wave of closures includes other notable retailers from the 1990s, such as Esprit, which recently filed for Chapter 7 bankruptcy. The brand, known for its vibrant clothing and memorable advertising campaigns, including one featuring a young Gwyneth Paltrow, is completely shutting down operations.
David Brooks from Authentic stated that many of the closing locations were "outdated and underperforming," suggesting little hope for their revival under new management.
Liberated Brands' bankruptcy filing represents a significant transformation in the surf and skate retail landscape, affecting iconic brands that have shaped youth culture for decades. The closure of 120 stores across North America signals the end of an era for Billabong, Quiksilver, and Volcom's traditional retail presence. While the brands will continue under new licensing agreements, this restructuring reflects the broader challenges facing brick-and-mortar retailers in an increasingly digital, fast-fashion dominated market.
