Search: surfstitch

SurfStitch Closing US Office Amid Losses

by The Editors on May 22, 2017

Australian retailer SurfStitch (formerly partially owned by Billabong) is expecting its losses to double this year, according to a story on Sky News. In what has been one piece of bad news after another, the company will also be closing their US office a.k.a

SurfStitch on Monday announced that weak apparel and footwear sales in its key markets, particularly in the UK, will drag it deeper into the red than the $5 million-$6.5 million loss it had forecast in February. . . The company now expects a loss of between $10.5 million and $11.5 million for its 2017 financial year.

Guess the suits haven’t been able to turn the retailer around like they’d hoped. 

[Link: Sky News]


Surfstitch Clears Board For Fresh Start

by The Editors on December 6, 2016


The guys in the suits (SurfStitch’s new CEO Mike Sonand and chairman Sam Weiss) are running Australian retailer Surfstitch and they’re cleaning up the board of directors including kicking off executive directors (and company founders) Lex Pedersen and Justin Stone, according to a story in the Sydney Morning Herald.

None of the board members who signed off on last year’s acquisition binge, which has since been written off, survived the blood-letting announced on Tuesday by new chairman Sam Weiss. . . To help make up the numbers, Weiss has had to collar Quiksilver veteran Harry Hodge, who joins the board this week. . . Surfstitch’s new boss Michael Sonand scored the remaining board seat.

Will be interesting to see if these changes make any kind of difference when it comes to the company’s performance.

[Link: Sydney Morning Herald]


Things Aren’t So Swell At SurfStitch

by The Editors on September 1, 2016

surfstitch_logoSurfStitch the Australian online surf retailer who was formerly owned (partially) by Billabong (and then took over Billabong’s North American online business including 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

They were reportedly planning on “rebranding” the entire business under the name, but things at 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.

[Link: OCBJ]



SurfStitch Buys Itself, Swell From Billabong

by The Editors on August 21, 2014

Billabong CorpIn a apparent race to free itself of anything that holds any real value, slogging surf clothing giant Billabong has reportedly sold its 51 percent stake in SurfStitch, and sold to a “consortium of investors” including SurfStitch founders Justin Cameron and Lex Pederson for US$35 million, according to a story on

“The transactions aligns with the seven point turnaround strategy announced at our AGM last December,” said Billabong CEO Neil Fiske. “In recent months we have begun the process of taking over the branded websites previously outsourced to SurfStitch. With these agreements we can accelerate our investment in the online presence and digital marketing of brands such as Billabong, RVCA, and Element, which will engage our ore consumers and in turn benefit the wider business.”

If we’re hearing this right Fiske believes he’s strengthening Billabong’s online presence by selling off their online properties. Interesting strategy, indeed.

[Link: Just-Style]


Billabong May Sell & SurfStitch

by The Editors on February 6, 2014

billabong_corp-tm.jpgBillabong has reportedly announced that they are considering selling their e-commerce businesses and SurfStich, according to a story on MSN Money.

The embattled maker of board shorts and wet suits, which was saved last year by a refinancing deal from U.S. private equity firms Centerbridge Partners LP and Oaktree Capital Management, is looking at strategic options for its SurfStitch and Swell site. It has appointed investment bank Guggenheim Securities to help with the review.

Yeah, why own online retailers when mall stores are doing so very well?

[Link: MSN Money]


Billabong Buys Into

by The Editors on December 22, 2009

Billabong Logo-1After buying in the US it appears that Billabong is looking to pick up, an Australian online surf retailer, according to a story in the Sydney Morning Herald Billabong.

Billabong International Ltd says it has entered into a conditional agreement to acquire an interest in online board sports retailer, Surfstitch. . . The agreement will allow Billabong acquire a minority equity interest in Surfstitch, with options to acquire 100 per cent of the business.

Add one more right move to Billabong’s growing list.

[Link: Sydney Morning Herald]

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Billabong Looking To Buy Rip Curl

by The Editors on October 30, 2017

Maybe someone who understands how business works can explain why Billabong, the company that ran itself onto the rocks after paying way to much for way too many smaller companies would now, after beginning to claw their way back to open ocean, look at picking up Rip Curl, and an online retailer (Surfstitch) which they have already bought and sold once, according to a story in The Australian.

Anyone have any theories? Increased sales? Independent online retail looking up? Eliminate a competitor? Give money to their friends and former business associates?

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Billabong Gasps For Air As Deals Die

by The Editors on June 3, 2013

billabong_corp-tm.jpgAfter 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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Billabong Snatches Up West 49

by The Editors on June 30, 2010

West49 BillabongHere we thought Billabong was busy buying RVCA and then they announce that they’ve just purchased West 49, the Canadian action mall retailer (the Zumiez of Canada) for $94.3 million, according to a story on Reuters.

The company said the acquisition of the 138 primarily mall-based retail outlets operated by West 49 will help boost its earnings in 2011. . . .”West 49 is a complementary business and promises to be an ideal Canadian distribution platform for Billabong to showcase its brands and extend its reach,” Billabong Chief Executive Derek O’Neill said in a statement.

In a Globe & Mail story West 49 CEO Sam Baio explained the sale like this:

“It makes sense today for powerful brands like Billabong to own retail stores,” Mr. Baio, who will remain chief executive officer of West 49, said in an interview. “I think we could safely say that we would want to grow the exposure of Billabong stores. We would definitely expand the Billabong concept into markets we’re not in yet.”

Way to own the channel. . .To recap Billabong’s retail march they now own: Beach Works, Honolua Surf Company, most of Australia’s, all of, Becker Surf, plus their Billabong branded stores.

[Link: Reuters via Sports One Source and Globe & Mail]