by The Editors on June 17, 2010
[This post was updated at 4:03 PM, June 18, 2010] We got an email on June 17, 2010 announcing that “due to some unforeseen circumstances” Joey Coleman, Joe Quattrocchi, Jamie Gonzalez, Nick Wisda, and Shane Wallace are “no longer with OK Skate.” All we can say is “Damn, that was fast.”
Shane Wallace has now confirmed that OK Skate is open for business, that he is no longer involved, and that he has “been advised to only release very limited information.”
Other sources report that part of the management team wanted to “do things right this time” and apparently their idea of “the right thing” differed from that of the people who control the OK Skate brand.
OK Skate’s new CEO Rick Schwartz says that some changes have been made:.
“We have made some changes and unfortunately some members of our team are no longer with OK Skate,” he said in an email. “Also, we have closed our retail store. However, the OK Skate web site www.okskate.com is operational and we intend to make it bigger and better than before. The company will be focused on being a web only business. . . . Like any new company that is still in “start up mode” we are still working on refining our business. We intend to keep serving our customers so we can provide them with a great selection of products.”
Growing pains, huh?
by The Editors on June 16, 2010
We’ve always called West 49 the “Zumiez of Canada” now, according to a post on Northwest Atlantic Retail site it appears that Zumiez is going to be the Zumiez of Canada.
Zumiez, in partnership with Northwest Atlantic looks to expand its Canadian presence starting in the Greater Vancouver market. The concept is ideally suited to 2,400-3,200 sq. ft. inline with 25’ minimum frontage.
It would make sense, however, we thought they’d just buy West 49. That would be much easier.
[Link: NWAretail via Shop-Eat-Surf]
by The Editors on June 16, 2010
It was exactly a year ago that the Rhone Group (a private equity firm specializing in “leveraged buy-outs of trans-Atlantic businesses“) bailed Quiksilver out to the tune of $150 million. We knew they were serious when they required two seats on Quik’s board. Now, according to a press release the Rhone Group is trading $75 million of that debt in for 16.7 million shares of Quiksilver stock at $4.50 a share.
The closing share price of the company’s common stock on the New York Stock Exchange on June 14, 2010 was $4.47. In addition, under the agreement, Quiksilver has an option, exercisable in its sole discretion, to require Rhone to exchange up to an additional approximately $65 million of the remaining outstanding principal amount of senior secured term loans for additional shares of common stock at the same price per share. This option is available for a 60-day period following execution of definitive documentation relating to the transaction.
If Quik decides to have Rhone act on all its options then Rhone would own 30 percent of Quiksilver. Bob McKnight says this is a good thing for shareholders.
“This exchange offer is an important step toward further de-leveraging our balance sheet and will provide us with additional operating flexibility in an improving business environment. Additionally, the Rhone offer demonstrates a real vote of confidence by a major investor who is willing to commit to a further equity investment amid a volatile stock market. We believe that stockholders will recognize the substantial value of this endorsement.”
It is also a great example of how debt translates into a loss of equity and how patient leveraged buy-out firms cooly and calmly leverage their buy-outs.
Follow the jump for the entire release.
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by The Editors on June 11, 2010
Transworld and Group Y have crawled into bed for the summer panel discussion season, now Agenda and Shop-Eat-Surf are joining the media/B2B love fest as partners on Agenda’s print show guide.
Shop-eat-surf will publish business profiles in the show guide of the show’s featured artists, plus brands exhibiting at the show and retailers attending the show. The guide also includes product showcases from exhibiting brands, maps of the show floors, event listings and messages from show sponsors. . . “We’re happy to partner with Agenda and its audience of top brands and retailers,” said Shop-eat-surf President Andrew Horan. “Agenda is an important trade show for the action sports, street and fashion industries, and we’re excited to present our style of online business news and information to a print publication, and to this audience.”
It’s a perfect collab when you think about it. What better venue for Shop-eat-surf’s old web content than a trade show brochure? Follow the jump for all official details.
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by The Editors on June 10, 2010
While reports of the return of the teen fashion shopper have been mixed, Canada’s West 49 (the Zumiez of Canada) has announced that they lost $2.6 million on sales of $40.9 million in quarter one ending May 1, 2010, according to a story in The Star.
During the quarter, same-store sales fell 2.6 per cent, and were particularly squeezed in Alberta and British Columbia largely due to weather and the sluggish regional economy in parts of the West. . . . West 49 said that reductions in selling, general and administrative expenses offset a decline in profit margins, while the company gained efficiencies in some of its operations.
It would appear that Canada is a little behind in the “recovery” as they are in pretty much everything else.
[Link: The Star]
by The Editors on June 9, 2010
The Queensland Supreme Court ruled today (June 10, 2010) that when Billabong terminated its licensing agreement with Suzi Burke Suwenda’s company CV Bali Balance they did it correctly, according to a story in The Australian.
CV Bali Balance, associated with Sydney-born businesswoman Suzi Burke Suwenda, has lodged a claim in a Bali court for about $168 million in damages from Billabong after the surfwear company cancelled a distribution licence in 2005. . . The action in a Denpasar court is current, but the Queensland Supreme Court ruling should have a big bearing on the case in Bali, with several of the legal actions there relating to the legality or otherwise of the termination of the distribution agreement.
Even with the good news Billabong’s stock still dipped .11 percent yesterday. Suwenda, on the other hand still believes PT Bali Balance will prevail in their civil case in Indonesia, according to Goldcoast.com.au.
[Link: The Australian and Goldcoast.com.au]
by The Editors on June 3, 2010
Quiksilver shares jumped 13.4% to $5.23 in after hours trading after the company announced improved profit and stronger outlook, according to a story in the Wall Street Journal.
For the quarter ended April 30, Quiksilver posted a profit of $9.4 million, or 6 cents a share, up from $2.8 million, or 2 cents a share, a year earlier. Excluding restructuring costs and other items, earnings from continuing operations rose to 11 cents from 5 cents. Revenue slid 5.2% to $249.3 million. . . In March, the company projected earnings in the low-single-digit range and expected revenue to fall in the high single-digits on a percentage basis, a generally downbeat view from Wall Street’s then estimates.
The most unsettling part for us was that sales revenue in the Americas dropped 13 percent. Higher profits and lower sales is a nice pony to ride. . . for a short while. Follow the jump for the entire press release or click here for the entire call transcript from The Street.
[Link: Wall Street Journal]
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by The Editors on June 3, 2010
Shaun White has reportedly left his long-time agent Mark Ervin and IMG and made the move to Hollywood’s uber-huge Creative Artists Agency, according to a Tripp Mickel story in the Sports Business Journal.
After eight years of working together, White last week dropped Ervin and IMG for CAA. He now is represented by a team of CAA agents who will work to develop marketing partnerships, appearances and television, music and motion picture opportunities for the 23-year-old.
Creative Artist Agency represents pretty much every A-lister in the business including (but not limited to) Steven Spielberg, Tom Cruise, Brad Pitt, Ashton Kutcher, David Beckham, LeBron James, and of course, Tony Hawk.
This ought to keep those millions rolling.
[Link: Sports Business Journal via ESPN/Action]
by The Editors on June 3, 2010
Xanadu, the East Coast’s own version of the failed Anaheim Gotcha Glacier indoor snowboarding and retail complex idea (which got approved in 2004), has apparently been rebranded as Meadowlands in an effort to round up more funding for the $2 billion, according to a story in NorthJersey.com.
Meadowlands SnowPark is “more than just a ski slope…it’s an Alpine resort,” the website reads. Kirkos calls it a “tourist magnet.” SnowPark will feature skiing, snowboarding, novice slopes, lessons and a snowplay area for kids. The 800-foot-long indoor snow facility is the first in North America, according to the site. The SnowPark will feature a quad chairlift, magic carpets for beginners and a platter lift. . . .New Jersey Sports and Exposition Authority (NJSEA) officials are working with Miami Dolphins owner Steve Ross and his Related Companies in hopes of an investment of the $500-700 million necessary to move the stalled project forward. . . .
Hard to believe that anyone would think they would see a return on that kind of investment.
[Link: NorthJersey.com]
by The Editors on June 2, 2010
Quiksilver announced today that member Charles Crowe has resigned from the company’s board of directors after 30 years.
“It has been personally and professionally gratifying to work with Quiksilver over the many years,” Mr. Crowe said. “I believe that under Bob’s continuing leadership, the company will strengthen and expand its global Quiksilver, Roxy and DC presence and I look forward to following the company’s progress. I would like to wish the entire Quiksilver team the best of luck in the future.”
. . . because they’re going to need it. Okay, we added that part. Mr. Crowe didn’t say it. Follow the jump for the entire release. [click to continue…]
[This post was updated at 4:03 PM, June 18, 2010] We got an email on June 17, 2010 announcing that “due to some unforeseen circumstances” Joey Coleman, Joe Quattrocchi, Jamie Gonzalez, Nick Wisda, and Shane Wallace are “no longer with OK Skate.” All we can say is “Damn, that was fast.”
