by The Editors on June 25, 2013
Billabong’s potential sale of RVCA, Element, or Dakine apparently has investors feeling more positive about the company according to a story on Bloomberg.com.
Shares in the company, which has breached debt repayment terms, surged as much as 35 percent following the statement to the Australian stock exchange and were 31 percent higher at 17 Australian cents at 2:49 p.m. in Sydney.
It’s sad when a 30 percent “surge” takes a stock to 17 cents, but good news is good news. The cause of the surge was a company update (which you can read after the jump) in which Billabong said that it has “entered into separate discussions with Altamont Capital Partners and Sycamore Partners regarding proposals presented to the Company for alternative refinancing and asset sale transactions.”
Guess the big question now is who will get what? [click to continue…]
by The Editors on June 5, 2013
Now that the complete take over of Billabong is off the table analysts are going over what they think the pieces of Billabong are worth.
Citi’s Craig Woolford, believes RVCA and Dakine could be sold for $110 million combined, according to a story in The Australian.
Billabong bought RVCA, which founder Pat Tenore established in 2001 in his garage, in 2010 for an undisclosed amount, saying it would contribute 2 per cent of the retailer’s total revenue. RVCA’s brand advocates include jiu-jitsu athletes like Rafa Mendes, musician Josh Harmony, surfer Christian Fletcher and skateboarder Mark Suciu. . . Billabong bought DaKine in 2008, 29 years after it was founded in Hawaii, for $US100m. It sponsors athletes in skiing, surfing, skating, windsurfing, kiteboarding and mountain biking.
It wouldn’t pay off Billabong’s $279 million debt, but it would be a step in the right direction. And when you think about it. Why buy all of Billabong’s debt when you can just scoop up a few of their better brands for next to nothing? Anyone have $110 million lying around? Hey, maybe Chip Wilson can help. . .
[Link: The Australian]
by The Editors on June 3, 2013
After announcing today (June 4, 2013) that takeover talks have officially ended, Billabong now must figure out what pieces of its rotting financial corpse can be sold for cash needed to pay off its hulking debts, according to a story in the Sydney Morning Herald.
Shares in the company plunged after they came out of a trading halt this morning, diving 56 per cent to 20 cents. . . Discussions were now being held with Sycamore and Altamont about potential refinancing and asset sales offered as an alternative to a takeover, it said. . . The proceeds of those possible deals would be used by Billabong to repay in full its existing debts, the company said. . . ‘‘The refinancing is intended to provide the company with a comprehensive solution and an appropriate capital structure, allowing it to continue its reform agenda,’’ chairman Ian Pollard said in a statement. ‘‘It’s our intention to conclude these discussions as soon as practically possible while aggressively reducing costs across all our global operations.’’
It appears the vultures have landed and will soon begin stripping the bones. Whoops. For the official word from Billabong, follow the jump.
[Link: Sydney Morning Herald via Rottmouth]
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by The Editors on May 23, 2013
In late August of 2010 Billabong dove in pretty hard on retail in general and Canadian retail in specific by purchasing the West 49 chain for $93 million dollars. Over the last three years things have not gone well for neither West 49 nor Billabong and now, according to a story in The Australian, Billabong is trying to sell all 70 stores, even though they still haven’t announced the results of Paul Naude’s take over attempt.
“The business cannot stand still,” a company spokesman said. “We have previously detailed our plans around transformation and global simplification including retail, and where . . . appropriate we will action them.”
As a reminder, Zumiez tossed in an offer to buy West 49 in 2010 and many are already speculating that they might be in line to pick up some Canadian stores at what will likely be a huge discount over their last offer. Guess this is one more bit of Billabong news that we’ll all just have to wait for.
[Link: The Australian]
by The Editors on May 19, 2013
It’s taken Jordy Smith a while, but he finally won an ASP event outside South Africa as he edged Brazilian surf hero Adriano de Souza 17.80 to 16.34 in the Billabong Rio Pro on Sunday, May 19, 2013 in two- to four-foot surf. It was Smith’s third ASP World Tour win.
“This win feels unbelievable,” Smith said. “It’s another dream come true. I knew I could win a World Tour event, but I had to prove to myself that I could do it away from South Africa. Thanks to crowd and Adriano (de Souza). He’s been ripping the whole event. Thanks to all of my friends and family for all of the amazing support.”
His appearance in the final pushed de Souza into the lead in the ASP World Rankings just head of Jordy. That and beating Kelly Slater in quarter final one, added up to a pretty good day for the Brazilian even if it wasn’t another win. For the official word, including scores and top five World rankings, follow the jump.
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by The Editors on May 16, 2013
Volcom has created a new position for Mandy Fry. She will be the vice present of women’s. Women’s what? We’re guessing with her year of experience in design (most recently 12 years at Billabong) she’ll be running everything at VeeCo that has anything to do with women.
“With Mandy leading the women’s division we are now fully equipped to build on an important part of our business. We see an incredible opportunity to further develop our women’s program on a global level,” said Jason Steris, CEO of Volcom. “Mandy’s creative vision and business insight is just what we need to take Volcom women’s to the next level. We are absolutely thrilled and honored to have her join the Volcom team.”
We’re expecting some great things for girls at Volcom in the coming year. Watch out! For the official word from Volcom, follow the jump.
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by The Editors on May 9, 2013
This morning (May 9. 2013), while the ASP pros were paddling out at Barra Da Tijuca, Brazil for round one of the Billabong Rio Pro we were stuck trying to figure out the time zone changes and didn’t catch much of round one. But it sounds like it was a pretty challenging day, even for Kelly Slater.
“I saw a bunch of good waves down the beach and just kept that to myself,” Slater said. “You can take off on that foam ball out the back on the reef and get one or two turns and you’ve already got as good a score as you can get on some of the ones on the right side of the scaffolding. Most of the waves this morning have been closeouts, but I figured at some point today it’s going to get good. There were some unbelievable barrels down the beach.”
All of the favorites, except for Taj Burrow, made it through round one and directly into rouund 3. For full results and the round 2 match-ups, follow the jump.
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by The Editors on May 9, 2013
While we were all awaiting news of the pending Billabong takeover by Paul Naude today (May 9, 2013), the company has requested that their trading halt continue even longer. Here’s what Billabong said in their release:
The securities of Billabong International Limited (the “Company”) will be suspended from quotation immediately, at the request of the Company, pending an announcement with regard to possible transactions affecting the Company, including in connection with the bid process announced on 14 January 2013.
In other words, they’ll let us know when they want to let us know. Until then, there’s no getting out. Oh, and it also looks like VF Corp is back in the buyout mix (Wall Street Jounrnal link via Tiffany) now that Naude’s “exclusivity” period has ended. Wonder how much more time they will need?
by The Editors on May 7, 2013
Billabong has placed a “trading halt” on their stock while the action sports fashion world anxiously awaits news of former US Billabong President Paul Naude’s takeover or kickout.
In a statement Billabong said:
Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the commencement of normal trading on Thursday, 9 May 2013, or when the announcement is released to the market.
It won’t be long now. We’re guessing the takeover will roll right through the approval process.
by The Editors on May 6, 2013
The world’s best big wave warriors gathered at The Grove in Anaheim, California on Friday night, May 3, 2013 for the Billabong XXL Global Big Wave Awards Ceremony. The 2013 Big Wave Award and Paddle In Awards both went to Santa Cruz, California’s Shawn Dollar.
“Is this really happening? Are we really paddling into waves bigger than what we used to tow?” exclaimed Dollar. “It’s surreal, it’s such an honor. This is what I’m passionate about, I’m as big a fan as anyone – to be the guy that set the record? Phenomenal. Stoked. Over the moon. 61 feet? It’s hard to put numbers on those things, but it was the biggest wave I’ve ever seen in my life,” said Dollar.
For the official word from Billabong (including full results) follow the jump. [click to continue…]
