by The Editors on March 5, 2012
So let’s say your brand is under pressure. Your stock is at the lowest point it’s ever been. The “sharks are circling” and a private equity firm has been low-balling offers since they noticed your were in trouble. What do you do? If you’re Billabong founder and largest shareholder, Gordon Merchant, you buy more stock, according to a story in The Australian.
In a substantial shareholders notice lodged late on Friday, Mr Merchant declared he had bought 2.52 million shares in the surf, ski and skate wear brand at an average price of $3.13 each, lifting his stake from 15.1 per cent to 15.8 per cent.
Hey, if your fortune is already down $240 million what else can you do? Billabong has to come back around right?
[Link: The Australian]
by The Editors on March 2, 2012
On January 31, 2012 a jury in Pinellas County, Florida reportedly awarded Internet Businessman Mark J. Horne a $15.5 million judgement in his lawsuit against World Publications and co-defendants Bonnier Corp. and CEO Terry Snow for breach of contract after Horne sold his company Nautical Solutions Marketing Inc. to World Publications in 2004, according to a story on Trade Only Today.
Now, Snow is pushing back on the judgement in the most creative way possible–his lawyer has filed motions for “mistrial alleging, among other things, juror misconduct and prejudicial comments by the attorney for plaintiff.”
Among the defendants’ post-trial motions, filed Feb. 10, are allegations that Horne’s attorney commented on something the judge talked about outside the presence of the jury; told the jury that Snow would be indemnified against any judgment (in other words, his insurance company would pay the damages); vouched for the credibility of witnesses; called defense witnesses liars; and instructed the jury in a theory of damages that the judge himself refused to talk about, said the defendants’ Orlando, Fla., attorney, Michael Crosbie.
According to the story it would appear that a judge has already “ruled on the juror misconduct motion Feb. 28 and denied a request for a mistrial.” For those not following along, World Publications was the company that purchased Transworld Media and then became Bonnier USA, Transworld’s parent company. Those who are at all interested in the media business should click the link and read the rest of the story.
[Link: Trade Only Today]
by The Editors on March 1, 2012
We began getting emails yesterday morning (February 29, 2012) saying that California’s Mammoth Mountain had cut a large portion of their full-time staff. Some were saying 75 full-time employees were cut after having already taken 10 percent pay cuts. Now, the details have been confirmed by Mammoth CEO Rusty Gregory in a Mike Lewis story on TransworldBusiness.com.
Twenty percent of the mountain’s full-time employees have been laid off and most of them were from senior management, admin, accounting, IT, and maintenance. Gregory blamed it on a really bad season.
“It was clear things weren’t going to change dramatically. If we can’t pay our bills, everyone loses their jobs,” says Gregory, who has been CEO since ’95. “This was one of the most heart-wrenching decisions I’ve ever made. These people are part of the community. Our kids all go to school together.” Gregory adds that while the decision was hard on him, it “was a million times harder for those that lost their jobs.”
Yeah, we bet. Luckily, the lifts are still running and there is snow. We know, we just tasted some. And who knows if things get too bad maybe Vail Resorts will swoop in and snap up another legendary California resort.
[Link: Transworld Business]
by The Editors on February 24, 2012
Deal Journal Australia interviewed Trilantic Capital Partners‘ partner Charlie Moore regarding the fund’s new investment in the Nixon brand and asked him why they would partner up with management and Billabong. Among other things Moore said this:
What we really like is that the business was founded by, and continues to be led by a entrepreneurial and dynamic duo, Andy Laats and Chad DiNenna. Andy founded the business shortly after picking up his MBA at Stanford from the ground up, partnered by Chad. They determined that the action sports sector didn’t have a watch brand clearly identified with folks clearly passionate about surfing, skating and snowboarding.
It would appear that TCP has their priorities straight, right?
[Link: Deal Journal Australia]
by The Editors on February 23, 2012
Private equity firm TPG Capital’s offer for Billabong is outrageously low compared to previous fashion label buyouts according to a story in Businessweek.
Excluding extraordinary items, analysts now estimate Billabong will earn A$64.5 million in the year ending June 2012, according to data compiled by Bloomberg. TPG’s offer is worth almost 12 times that forecast, compared with the median bid of 24 times profit for takeovers of apparel makers greater than $500 million in the U.S., western Europe, and developed markets in the Asia-Pacific region, the data show.
In other words, TPG is offering half the average multiple for Billabong. In its analysis Businessweek questions what exactly TPG knows about the company that would cause it to make such a low offer. Are things that much worse than they appear? Or is TPG just out trolling for bargains?
For an in-depth look at the continuing Billabong situation, click the link and read the story. Or check out the Sydney Morning Herald’s piece A Tragedy of Errors.
[Link: Businessweek and Sydney Morning Herald]
by The Editors on February 22, 2012
In December of 2011 Chinese electronics manufacturer Signeo, the manufacturer of Soul by Ludacris headphones filed suit against new action headphone company SOL Republic claiming trademark infringement.
According to SOL Republic, Signeo has gone even farther and tried to obtain an injunction against the company saying that SOL Republic named their company specifically to confuse people.
In response SOL Republic says they did nothing of the sort:
We founded SOL REPUBLIC because we love music and how it positively effects our lives. . . We committed ourselves to make great sound more affordable for everyone. . . We like Ludacris. We like his music and we are truly friends. We have nothing against him. . . We don’t like the practices of Signeo, which licensed Ludacris’s name, nor of its President Bob Bonefant. . . We don’t like their attempt to intimidate our company and the really great people in it. . . We don’t like their army of lawyers from multiple law firms who are trying to get a judge to shut us down.
Headphones are apparently big business. For the rest of the SOL Republic statement, follow the jump. [click to continue…]
by The Editors on February 22, 2012
Vail Resorts has reportedly agreed to purchase Lake Tahoe’s Kirkwood Resort for approximately $18 million, according to a story in the Washington Post.
If the deal goes through, Vail Resorts would operate three world-class mountain resorts in the Lake Tahoe region, including Heavenly Mountain Resort in South Lake Tahoe, Northstar California on the north shore and Kirkwood Mountain Resort. . . Vail Resorts said Heavenly and Northstar pass holders will have access to Kirkwood and Kirkwood pass holders will be able to ski and ride Heavenly and Northstar.
Looks like the only thing left at Tahoe for Colorado to buy is the lake. We haven’t really had a reason to drive all the way down to Kirkwood anytime in the last decade, but there are some goods to be had there on occasion.
[Link: Washington Post via TWSnow]
by The Editors on February 22, 2012
IVI, the new eyewear joint between Rob Dyrdek, Fox Head‘s Pete Fox and designer Jerome Mage has announced the hiring of former RVCA Marketing Director Brian Garofalow as marketing director.
“Adding Brian to the IVI staff is an exciting step for us. His experience and background is a perfect fit for where we want to take the brand and having had prior success working with Rob is a great benefit. Our team is incredibly strong as we head into the launch phase of IVI.” Pete Fox, CEO, Fox Head, Inc.
IVI product is set to launch this spring. For the official word, follow the jump [click to continue…]
by The Editors on February 22, 2012
It was Matt Kass and his passionate, creative, hardworking drive that created the Grenade Gloves brand as we all knew it. Yes, he was technically the co-founder, but he was the one who kicked it into over-drive from an old converted gas station in the tiny village of June Lake, California. It is the rest of the Grenade story that is not so clear. It includes family feuds, threats of lawsuits, bodily harm, and questions of sanity on all sides.
Yobeat’s Brooke Geery sat down with Matt Kass for his “Hump Day” interview and tried to get the Grenade story straight from the inventor of the Kassrole. Kass, who currently lives on the Oregon coast with his fiancé and young son, works as a professional fisherman but he still has action brand idea. Kass says:
It’s kinda cheesy. I sit around and everyone has their story about this or that. I was there, I know what happened. Some things that happened I still don’t understand. Like I ask myself, “what the fuck happened? What could I have done differently?” Then I was reading Yobeat and Colin’s interview and it all came together for me. It wasn’t about me. It was about a group of guys and a time and place…like a movement…like a band! And when they break up it’s never the same!
Follow the link for the rest. And yes, there’s some good stuff in this interview. Click the link to read the rest.
[Link: Yobeat]
by The Editors on February 16, 2012
Nixon co-founders Chad DiNenna and Andy Laats are smiling today as they find themselves back on the list of company owners after a deal announced today which valued the company at US$464 million.
Billabong has entered into definitive agreements with Trilantic Capital Partners (“TCP”) to establish a joint venture to accelerate the growth of the Nixon brand globally. . . Billabong and Trilantic will each hold approximately 48.5% of Nixon, a leading brand in the global youth accessory market, and management will purchase the remaining 3.0% stake. . . Billabong expects to realise net proceeds of approximately US$285 million1 as a result of this transaction, all of which will be used to repay debt.
In other words, Billabong sold half of Nixon to a private equity fund to raise cash. But, Laats and DiNenna will stay on as CEO and EVP of Marketing (and own three percent of the company) so everything is as it should be, it appears. One question: does this mean Nixon could have two different private equity firms as owners? That could get interesting.
For more official details on the deal follow the jump. [Photo: Todd Richards] [click to continue…]
So let’s say your brand is under pressure. Your stock is at the lowest point it’s ever been. The “sharks are circling” and a private equity firm has been low-balling offers since they noticed your were in trouble. What do you do? If you’re Billabong founder and largest shareholder, Gordon Merchant, you buy more stock, according to a story in The Australian.
