It appears that PacSun will live to sell another Volcom T-shirt after a court ruling approved its reorganization plan, according to a story in the Orange County Register.
Under the reorganization plan approved Tuesday by U.S. Bankruptcy Judge Laurie Selber Silverstein in Delaware, PacSun will give all its stock to affiliates of private equity firm Golden Gate Capital, its senior lender. . . In exchange, Golden Gate will reduce the amount it’s owed by PacSun to about $30 million initially from $88 million, Gary Schoenfeld, the retailer’s chief executive officer, said in an interview. Golden Gate has also agreed to invest $20 million in the company, most likely in form of new debt, he said.
And presto, $58 million in debt is gone. Wonder how long it will take Mr. Schoenfeld to blow through this new $20 million? We’re guessing not long. PacSun may have worked wonders on their business, but we doubt any of that is going to bring the kids back to their mall stores (even though some research suggests teen mall traffic is actually increasing).
[Link: OC Register]
SurfStitch the Australian online surf retailer who was formerly owned (partially) by Billabong (and then took over Billabong’s North American online business including Swell.com) had a pretty rough go in fiscal 2016. According to a story on the Orange County Business Journal, the company (which went public in 2014) lost $116.4 million on $176.9 million in revenue for 2016.
The loss accounts for “strategic review adjustments,” including impairment, administrative, selling and distribution expenses. Its revenue total includes $157.5 million in retail revenue, $16.82 million from Surf Hardware, and $2.55 million from its media properties (Stab Magazine and Magicseaweed.com).
They were reportedly planning on “rebranding” the entire business under the Swell.com name, but things at Swell.com didn’t go much better in 2016 so they’re going to put those changes off for a bit.
Swell in Irvine, which will shrink to 14 employees after 65% staff reduction is complete in October, contributed $18.92 million to retail total. That’s down 12 % from $21.6 million the brand posted in fiscal 2015. Swell’s gross earnings were down 44% to $5.4 million.
Apparently, the kids just aren’t blowing all their money on expensive, branded, logo’d surf togs anymore. What a surprise.
Oh, and if you know anyone who wants to buy San Diego, California’s Surf Hardware International (parent company of FCS Fins), please let SurfStitch know. They bought the company in November 2015 for $16.6 million, but have now decided that it’s not such a good fit.
There must be a ton of money in proposing wave pools, because it seems people are always proposing them and never building them, ever. The latest example is the $25 million park being proposed by Perth, Australia based Wave Park Group in Western Australia, according to WA Today.
“Perth is blessed with a number of idyllic beaches but the surf quality at some of those beaches is often poor, with over-crowding in the line-up also becoming an increasing issue,” said Wave Park Group Executive Andrew Ross. . . “Surfing is enjoyed by millions of Australians for excitement, lifestyle and recognised health benefits and is second only to AFL in terms of participation, so it seems fitting that Tompkins Park, a hugely popular sporting hub, could now include a surfs sports facility.”
The pitch sounds intriguing, doesn’t it? It’s a “Wave Garden” design after all. Let us know when it’s built. Oh, and one more thing, if anyone anywhere has surfed a wave pool that they loved so much they’ve gone back week after week and bought a season pass (not counting Kelly’s central valley compound), please let us know. We’d love to be less bitter on this topic and good info would help.
[Link: West Australia Today]
It’s been a rough year for the beleaguered Billabong. Last year they were back on the come-up with a profit of $4.2 million (which is kind of a sad thing to be happy about for the once profitable surf giant), but this year they say the taxes got ’em, according to a story in the Gold Coast Bulletin.
Billabong said more than two-thirds of its decline related to higher tax costs, with a tax expense of $7.8 million this year compared to a $12.2 million tax credit a year earlier. . . CEO Neil Fiske said FY16 was an “extraordinarily tough year” which had seen Billabong hit a significant “speed bump” in its multi-year turnaround strategy. . . But, he said, most of the pain had been outside Billabong’s control and he believes FY16 will be the year the company finally turns a corner.
It’s always next year isn’t it? We all hope for rainbows and unicorns in the coming fiscal year, don’t we? We certainly do and if we can share some of them with Billabong, we’ll do it.
[Link: Gold Coast Bulletin]
Venture Snowboards, the handcrafted snowboard company based in Silverton, Colorado, is back in action after taking last season (2015-16) off.
“Seventeen years and counting, we are back and more dedicated than ever to the pursuit of the ultimate ride,” said founder and owner “Seventeen years and counting, we are back and more dedicated than ever to the pursuit of the ultimate ride,” said founder and owner Klemens Branner..
Ah, technically, it’s only 16 years, but who’s counting. We’re all just glad you’re back. For the official word from Venture, please follow the jump.
[click to continue…]
Group Y will be celebrating 10 years in action sports and youth culture with a special gathering Wednesday, August 10, 2016 in Huntington Beach, California. The event kicks off at 6:30 PM at SeaLegs At the Beach with food, drinks and a speaking appearance by Ryan Kingman, President of the newly launched Villager Goods coconut water.
“It’s incredible to see how Group Y has grown over the past decade with the support of the sports and entertainment industry, world renowned athletes and creatives, our dedicated marketing partners and the media.” says Mark Sperling, Group Y co-founder. “When we started back in 2006 there was a huge need to create a forum that would allow this community to come together to share ideas and experience that would grow the industry and address the uniqueness of youth culture programs and products. This night will be about sharing stories, creating new ideas and saying thank you.”
We know it seems like the Vans US Open of Surfing just ended yesterday, but it’s time to get back out in the mix. You’ve had enough time to recover, but then who are we to talk. For the official word from Group Y including all the details, please follow the jump.
[click to continue…]
Oakley, the company that basically created action eyewear, continues to see its staff size shrink as parent company Luxottica marches on wto maximize efficiencies at Oakley’s Orange County, California headquarters. According to a story in the Orange County Regitster about 20 percent of their workers will be cut leaving the company with around 2,000 employees.
“Last year, we announced the further integration of Oakley into Luxottica, allowing the brand to better leverage Luxottica’s resources, distribution channels, and manufacturing and market power,” a Luxottica spokesperson said in a statement. “This final stage of the integration will line Oakley up with the rest of Luxottica in terms of channels, functions and geographies, simplifying everything from decision-making to execution.”
Downsizing always seems so logical and wise, doesn’t it? Especially after one company is consumed by another.
[Link: OC Register]
The World Skateboarding Federation has announced that they will be building a brand new skatepark next to the tennis courts in Montreal, Canada’s Olympic Park. This new sporting feature will apparently be host to the 2017 Canadian Skateboarding Championships.
“This new park will be a fantastic addition to Olympic Park, serving the local skateboarding community as well as hosting major events in the future,” says Tim McFerran, president of the World Skateboarding Federation. “After months working on the design with Spohn Ranch and local Montreal skateboarders, we are moving forward on construction and the plan is to have the park completed by the summer of 2017 with the grand opening at the Canadian Skateboarding Championships.”
New parks are always good, no matter where they are. This one will reportedly be open to the public sometime next summer. For the official word from the World Skateboarding Federation please follow the jump.
[click to continue…]
After buying Sector 9 Skateboards for undisclosed sum in July of 2008, Billabong has apprently decided that in 2016 they’d rather have US $12 million than continue to operate a longboard company. The company has now sold the business to Bravo Sports, the parent company of Pro Tec, Kryptonics, and Maple.
“Our priority as a Company has been lifting the performance of our three biggest global brands in Billabong, RVCA and Element, while simplifying the business wherever possible. This transaction is part of that simplification and is consistent with our stated strategy,” said Billabong CEO Neil Fiske.
Yes, Billabong is now running in the opposite direction that they were running in 2008. And they are just as optimistic about selling Sector 9 (for a fraction of what they paid) as they were buying it. Luckily, no one in business remembers the past.
For the official word from Billabong, please follow the jump.
[click to continue…]
Just another little reminder that the Agenda Show rocks the Long Beach Convention Center beginning tomorrow, June 29, 2016. We’re not going, but you should. Truth is, you can still register by clicking the link. Don’t be shy. Click it.
[Link: Agenda Show]