by The Editors on September 24, 2012
Turns out Bain Capital, the company co-founded by US Presidential bumbler Mitt Romney, is not interested in purchasing Billabong, according to a story last week in the Sydney Morning Herald.
Billabong said today the second party to make a takeover offer had now withdrawn from the formal process. . . The company’s shares slumped as much as 6.9 per cent after coming out of a trading halt this morning and were recently trading at $1.335, down 11 cents, or 7.6 per cent, well below the value of the offers.
But the most interesting comment cam from IG Markets analyst Cameron Peacock.
‘‘They are a struggling retailer,’’ he said. ‘‘As a shareholder the only reason you would have been comfortable holding this stock was because it was under takeover offer. ‘‘I’m surprised it is only down seven per cent.’’
Maybe Billabong should swap out their “Life’s Better In Boardshorts” tagline for a new one: “We’re A Struggling Retailer.”
[Link: Sydney Morning Herald]
by The Editors on September 19, 2012
Andrew Warren, a post-doctoral researcher in economic geography at the University of Wollongong and Chris Gibson, a professor of Human Geography at the UofW are apparently writing a book on the surf industry. When the news came out Ripcurl is hoping to join the sell-out crew, the to academics decided it was the perfect time to promote their new book, Surfing Places, Surfboard Makers: Craft, Creativity and Cultural Heritage in Hawai’i, California and Australia (University of Hawai’i Press), with a web post titled, All washed up: have surf megabrands forgotten their roots? on The Conversation blog.
In the book, Warren and Gibson postulate that there is much more to this than a fashion disaster.
In our new book on the surf industry, to be published next year by University of Hawaii Press, we make the point that, like music, it is a subcultural industry defined by a tension between “major” corporate labels and smaller “independents”. Independent labels have more credibility because they are considered closer to the grassroots of surfing culture. They are often based in specific surf cities and regions – southern California, the Gold Coast, north shore O’ahu – where surf subcultures are strong. . . When brands grow and expand, they take on the character of corporate enterprises.
Nothing we haven’t heard before, but it’s always interesting to read an intelligent discussion of the coming end of surf fashion. Click the link for the rest.
[Link: The Conversation]
by The Editors on September 19, 2012
The world’s largest snowboard company (Burton, duh) has partnered with the Williams-Sonoma, Inc. owned Pottery Barn Teen on an “an exclusive home collection” according to a story on Pymnts.com.
The new collection will be available through the PBteen catalog, e-commerce site PBteen.com and at the six PBteen stores beginning this September through the 2012 holiday season. . . The new Burton home collection includes bedding, lighting, lounge seating, wall décor and accessories for tweens and teens. The collection features patterns and prints inspired from Burton’s popular apparel line. Some highlights include: a quilt which is comprised of 12 t-shirt logos from Burton’s current and past seasons, as well as a duvet cover modeled after a Burton snowboard jacket with authentic details like zippers and pockets. The Burton home collection also includes wall murals featuring images of Burton Team Riders: Danny Davis, Gabi Viteri, Hannah Teter, Jussi Oksanen, and Nicolas Muller.
This stuff actually looks really good. If Pottery Barn is going to do snowboarding, they might as well do it right. Same for Burton.
[Link: PBTeen via Pymnts.com]
by The Editors on September 17, 2012
Well, there goes the surf clothing industry. Rip Curl Group Pty. is now reportedly looking for someone who will trade them A$500 million for the brand, according to a story on Bloomberg Businessweek.
The closely held Australian company has hired Bank of America Corp.’s Merrill Lynch unit and is seeking about 10 times its projected A$48 million 2013 earnings before interest, tax, depreciation and amortization, the person said, asking not to be identified before a public announcement by Rip Curl. Merrill Lynch is assessing “unsolicited approaches” for the company, Rip Curl said in a statement today.
Sound great. It’s such a sellers market in the surf fashion industry right now.
[Link: Bloomberg Businessweek]
by The Editors on September 12, 2012
Snowpark Technologies, the designers and builders of custom snowboard parks for Burton, Winter X Games, Oakley, and Red Bull announced today that they have hired former Mammoth Mountain Action Spsorts Brand Manager Josh Chauvet as their Resort Program Marketing Director.
“Josh returns to the SPT family during a period of growth and change for our brand,” said Chris “Gunny” Gunnarson, SPT’s President. “In the past, Josh was instrumental in the development of the SPT Park Program. Over the years, the program has evolved and as we embark on a new chapter with our SPT partner resorts, and with our increased focus on company-wide marketing initiatives, he is a welcomed addition to the team.”
For the official word from SPT, follow the jump. [click to continue…]
by The Editors on September 11, 2012
Thanks to a new deal with Japan’s Fusion, Inc., Sessions branded clothing will now be licensed in Japan, rather than just distributed.
. . . becoming a SESSIONS licensee will ultimately allow them [Fusion] to provide its Japanese end user a more competitive price, expanding brand presence in the country. . . SESSIONS President Cindi Busenhart is excited about the possibilities linked to the new agreement, “We look forward to collaborating with Fusion as we expand the SESSIONS brand in Japan. Both companies have a strong background in action sports and we have been partners for years. This agreement marks the beginning of a new era for SESSIONS, strengthening the brand globally while maintaining the highest quality product.”
For the official word from Sessions, follow the jump. [click to continue…]
by The Editors on September 11, 2012
Dakine is leaving it’s old Hood River headquarters in the spring and will occupy half of a 45,000-square-foot facility in the Port of Hood over’s Waterfront Business Park, according to a story in the Portland Business Journal.
Dakine will relocate from its current headquarters on Columbia Street in downtown Hood River to the new Parkside Lands site at 603 Portway Ave. next spring. Once the building is completed, Key Development will transfer ownership to Parkside Lands LLC.
Looks like workers will be able to sail (or kite) right out the front door. New offices, new owners? Wonder what else is in store for Dakine in the coming months?
[Link: Portland Business Journal]
by The Editors on September 6, 2012
Billabong announced yesterday (September 5, 2012) that they have received an “indicative, non-binding and conditional proposal from another party interested in acquiring all of the shares in the company and which states “we currently propose a cash consideration value of around $1.45 per share.”” This is in addition to the previous offer for about the same price made by TPG International, LLC.
Due to a “confidentiality agreement” Billabong won’t say who made the offer, however, Bloomberg Businessweek claims that “people familiar with the matter” say the new bidder is the Boston, Massachusetts based Bain Capital (hello Mitt Romney). This is apparently being seen as good news.
“It’s great news for shareholders of Billabong because it adds pricing tension,’ said Tim Montague-Jones, senior equity analyst at Morningstar Inc. (MORN) ‘‘The probability is quite high that a higher offer could come through. A deal could get done.” . . Shares of Billabong rose 7.5 percent to A$1.365 at the close of Sydney trading, the biggest daily gain since July 24, and swelling the company’s market value to A$654 million.
Bain Capital Private Equity is involved in dozens of companies including Bombardier, Burlington Coats, Domino’s Pizza Japan, Dunkin’ Donuts, Guitar Center, and many, many more. For the official word from Billabong, follow the jump. [click to continue…]
by The Editors on September 4, 2012
Westlife Distribution, the new owners of the Matix Clothing brand, are keeping the family together by re-signing Daewon Song, Marc Johnson and Mike Anderson. They’ve also added surfers Turkey Stopnik and JJ Wessels.
Daewon and MJ have been with Matix since the beginning and it was only natural to continue on with the relationship. Mike Anderson plays a key role as well, and each of their signature collections and personal style add a different flavor to each season.
For the official word from Matix, follow the jump. [click to continue…]
by The Editors on September 4, 2012
Last week Spy announced (in forms filed with the SEC) that they were cutting 20 employees and ending their direct sales in Europe and moving back to a distributor model. What does this all mean exactly? We’re not sure and neither is Jeff Harbaugh, but that hasn’t stopped him from discussing what he think about it on his Market Watch website.
I feel strongly both ways about what Spy is doing. On the one hand, the balance sheet and cash run rate certainly seems to require expense reduction. On the other hand, their strategy has been to invest in the brand to get revenues to a level that could support the required marketing effort. For all the progress Spy has made in increasing brand sales, it looks like somebody think it hasn’t happened fast enough to justify the continuing required cash investment.
For the rest of Harbaugh’s thought, click the link.
[Link: Market Watch]
Turns out Bain Capital, the company co-founded by US Presidential bumbler Mitt Romney, is not interested in purchasing Billabong, according to a story last week in the Sydney Morning Herald.
