Wall Street

Billabong Does A Business Thing

by The Editors on February 23, 2017

So, today Billabong announces they’re selling the Tigerlilly fashion brand. And while we couldn’t care less about the news, what we always find comical in these transactions is what the company says about the transaction and how it fits right in with the company’s fiscal plans (plans that are always in direct opposition to the reasons the company bought the brand in the first place).

For example, in December of 2007 when Billabong bought Tigerlilly then CEO Derek O’Niell said: ”We have been seeking to expand our girls business and Tigerlily, with its accent on swim, is very complementary to our Billabong Girls brand.”

Now, seven years later, while selling the brand Billabong says: “The transaction is in line with Billabong’s strategy to simplify its brand portfolio.”

See what they did there? In an odd twist (at least for Billabong) this sale will reportedly generate more revenue than the company originally paid for the brand. The sale will reportedly generate $60 million and they only paid $5.8 million for seven years ago. Usually, it’s the other way around. Follow the jump for the official release.

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Vail Buys Stowe For $50 Million

by The Editors on February 21, 2017

It’s getting harder and harder to spend a dollar at a snowboard resort without that dollar going to Vail Resorts, Incorporated. And today, it just became even more difficult as Vail took its first bite out East with the purchase of  Stowe Mountain Resort from the Mr. Mansfield Company, Inc. for $50 million.

“We’re thrilled to add Stowe Mountain Resort to our family of world-class mountain resorts. With the investments in both mountain infrastructure and base area facilities that AIG has made over the years, Stowe Mountain Resort has become the premier, high-end resort for East Coast skiers and snowboarders. We look forward to working with AIG to continue enhancing the guest experience and to ensure the resort’s long-term success,” said Rob Katz, chairman and chief executive officer of Vail Resorts.

In the deal Vail Resorts is acquiring “all of the assets related to the mountain operations of the resort, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school facilities) at Mount Mansfield and Spruce Peak.” Mt. Mansfield Company is keeping the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club, and a couple other pieces of land they’re hoping to develop in the future.

Vail’s quiver of resorts now includes, Stowe, Vail, Beaver Creek, Breckenridge, Keystone, Park CityHeavenly, NorthstarKirkwoodWhistler BlackcombPerisher in Australia; and little resorts like Wilmot Mountain in Wisconsin, Afton Alps in Minnesota, and Mt. Brighton in Michigan. Boom. For the official word from Vail, please follow the jump.

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Outdoor Retailer Is Out Of Utah

by The Editors on February 16, 2017

Today (Thursday, February 16, 2017) Emerald Expositions, the parent company of Outdoor Retailer and Interbike, announced that after holding a teleconference with Utah Governor Herbert that they will no longer be considering Utah as a potential location for future trade shows.

The shows reportedly bring nearly $45 million to the Salt Lake City economy each year, according to a story in the Salt Lake City Tribune and that money will be going elsewhere. . . Hells yeah, OR. For the official word, please follow the jump.

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Outdoor Retailer Responds To Boycott

by The Editors on February 14, 2017

In the last week the Outdoor Retailer Show has seen several companies state their opposition to the policies of Utah’s Governor Gary Herbert by announcing that they will not be attending this summer’s Outdoor Retailer Show in Salt Lake City, Utah — Patagonia, Arc’teryx, and Polartech just to name a few. With all these announcements the group that stands to lose the most is the Outdoor Retailer Show itself. And we wondered what their response would be.

In a open letter to the outdoor industry titled Our Goal is Not Just to Speak. Our Goal is to be Heard, OR Show Director Marisa Nicholson said today (Tuesday, February 14, 2017) that while several companies have announced they are leaving, other have showed their support.

“We respect that brands have to make decisions that reflect their values,” Nicholson says. “However, in the last week, the heart-felt expressions of support for the show from exhibitors of all sizes have far outweighed those choosing not to participate. Iconic brands such as adidas Outdoor, Ibex, The Conservation Alliance, The North Face, REI and Wolverine Worldwide, among many others have not only reinforced their intent to come to SLC this summer, but also, will make their voices louder than ever before. (Please look at unity.outdoorretailer.com for specific expressions of support.)

While Nicholson says OR respects the larger company’s decisions, the people she says the boycott hurts most are the smaller brands.

But the boycott of Outdoor Retailer levies the most significant negative impact on those medium and small-sized companies that count on the show to conduct business,” Nicholson says. “We have a unique, maybe even singular, opportunity to coalesce, organize, speak and lay plans to make a difference around public land awareness in such a way that it is not only heard but that it can make a positive difference.

Yes, trade show directors still believe that trade shows are important, and so do some brands, but Utah’s governor certainly isn’t helping anyone out by being staunchly against the protection of wilderness lands.

Nicholson says Outdoor Retailer is “as swiftly as humanly possible” looking for alternative locations to hold the show. So there’s that. For Nicholson’s entire letter, please follow the jump.

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Patagonia Pulls Out Of OR Show

by The Editors on February 7, 2017

Patagonia has decided that since Utah Governor Gary Herbert signed a resolution urging the President to rescind the Bears Ears National Monument, they are no longer attending the Outdoor Retailer Show in Salt Lake City.

Because of the hostile environment they have created and their blatant disregard for Bears Ears National Monument and other public lands, the backbone of our business, Patagonia will no longer attend the Outdoor Retailer show in Utah and we are confident other outdoor manufacturers and retailers will join us in moving our investment to a state that values our industry and promotes public lands conservation.“ – Rose Marcario, President and CEO, Patagonia, Inc.

That’s one way to get out of trade show. For the full word from Patagonia, please follow the jump.

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Titans Of Mavericks Goes Bankrupt

by The Editors on February 1, 2017

Capitola, California entrepreneur Griffin Guess, the guy running the Titans of Mavericks big wave surf contest and Big Cartel Management reportedly filed for bankruptcy on both businesses on Tuesday, January 31, 2017, according to a story in the Mercury News.

Cartel Management Inc. and Titans of Mavericks LLC, . . . filed for Chapter 11 bankruptcy protection amid a sea of legal and financial problems. . . It’s unclear exactly what the twin bankruptcies mean for the contest this year and in years to come, since Cartel last year obtained a new five-year permit from the San Mateo County Harbor District to run the contest off Pillar Point.

But there is more:

The bankruptcies come on the heels of a judgment this fall in which jurors found Cartel and Guess’s wife, swimsuit model Marissa Miller, owed a company $1 million for breaching a contract to promote sunless tanning products and a tanning salon in Southern California. . . On Friday, Red Bull Media House filed a breach of contract and unlawful enrichment claim against Cartel and Titans of Mavericks for $400,000. Red Bull has broadcast the Mavericks contest live on the internet. . . Cartel also owes $280,000 to Fox Sports in another disputed claim, according to the bankruptcy filing. The harbor district is owed $6,600 as part of the government contract involving the Mavericks contest.

Guess says none of this should really worry fans of big wave surfing as the bankruptcy is part of a “strategy” to sell off the intellectual property rights and get them into the hands of someone who can “gain from all our hard work,” he said.

In fact, Titans of Mavericks spokesperson Kelsey Kaulukukui said in an email to the Mercury News that none of this should suggest that the contest won’t happen this year. Remember, bankruptcy is just big business’s way of saying, “whoops.”

[Link: Mercury News]

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Ex-Billabong CEO Gets 8 Year Prison Sentence

by The Editors on January 27, 2017

Former Billabong CEO Matthew Perrin was sentenced to eight years in prison for fraud and forgery on January 27, 2017, according to a story on News.com.au.

In sentencing the 44-year-old to eight years behind bars, District Court Judge Julie Dick said he still had “no self realisation or remorse”. . . “You seem to simply refuse to recognise that it was you who forged documents and you who caused them to be presented to the bank,” Judge Dick said. . . She said he blamed his ex-wife Nicole Bricknell, the Commonwealth Bank and his former business partners.

Doesn’t sound like odd behavior for a corporate CEO. This one just got caught, it seems. But it’s not over for him. He’s 44 year old and will be eligible for parole in 2021, unless his lawyers can overturn his conviction on appeal, which is exactly what they are going claiming “the jury’s verdict ‘was unsafe and unsatisfactory’.”

Unfortunately, in Australia it seems that they don’t have special country club prisons for white-collar criminals and Perrin will be placed in Arthur Gorrie Prison with “rapists and murderers” according to a story in the Gold Coast News

[Link: News.com.au]

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Burton Supports Women’s March On DC

by The Editors on January 19, 2017

Donna Carpenter, the CEO of Burton Snowboards, has decided to help out employees who are making their way to Washington DC for the Women’s March on Washington on January 21, 2017, according to a story in Cosmopolitan Magazine. Donna is giving employees who want to go two nights lodging and $250 cash towards travel. How’s that for support?

I knew there would be a lot of Burton women who were making the effort to get down to Washington,” Donna said. “They’re that type of people. We’re in Vermont, in Bernie-land. I had a lot of employees who were volunteering for Bernie [Sanders]. But it’s a long way from Burlington to Washington, D.C. For me, it’s all about numbers. What they need are numbers to make a point.

Not only does Burton live in Bernie-land, Bernie is like family to the company (literal family) so it makes sense. It will also be nice for everyone to get out in the streets of DC the day after Friday’s events. For more thoughts from Donna, click the link.

[Link: Cosmopolitan]

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The Lily Drone’s Crash Landing

by The Editors on January 16, 2017

Remember this Lily video? It was a drone that magically followed you wherever you went and shot epic follow cam footage without anyone at the controls. Yeah, we do, too. And when we first saw it we thought it was a bit of a dream product — great in the promo video, but never something that would actually work. In fact, we never even posted anything about it.

Apparently, many others believed the hype and threw down big money on pre-orders. Unfortunately, things didn’t go well during production of the drone and the company has now closed up shop and is trying to return money to those who pre-ordered. Meanwhile, the San Francisco District Attorney’s office has filed a civil consumer protection suit “alleging the company had intentionally lied to potential customers with its launch video” according to as story in Forbes.

An interesting side note is that legendary snowboard filmer Brad Kremer has been sucked into the story as he was the recipient of emails that are being used as evidence in the case against Lily. 

In an email cited by the lawsuit, Lily CEO Balaresque wrote to Brad Kremer, a video producer who specialized in snowboarding shoots, that shots from the Lily Drone will be using a “Gopro mounted to a Lily prototype. . . . However, we do not feel comfortable telling people that we shot [view from Lily] scenes with a Gopro (because the whole thesis of our product is that you do not need a Gopro),” he continued. “Can you modify a Gopro image in post-processing so that people cannot tell that it was taken from a Gopro…”

According to the story, Kremer declined to discuss the case with Forbes.

Which reminds us: Always beware the drones. . . 

[Link: Forbes via Boing Boing]

 

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Luxottica Gets Even Larger With Essilor

by The Editors on January 16, 2017

As if Oakley’s corporate parent Luxottica couldn’t get any larger, the company today announced that it has merged with French optics giant Essilor in a deal reportedly worth $49 billion, according to a story in the Orange County Business Journal.

The $49 billion deal, expected to close in the second half of the year, will create “EssilorLuxottica,” with total revenue of about $16 billion and more than 140,000 employees. Luxottica’s Executive Chairman Leonardo Del Vecchio will serve as executive chairman and chief executive, while Essilor Chairman and Chief Executive Hubert Sagnières will be appointed executive vice-chairman and deputy chief executive of the new entity.

Thanks to the new deal, Oakley is now siblings with Foster Grant as well as nearly every other eyewear brand and retail outlet on the planet. Guess they’ve got the entire spectrum covered now.

[Link: OCBJ]

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