by The Editors on January 23, 2014
When we spoke to Graham Stapelberg at the Agenda Show two weeks ago and asked him how things were going at Billabong, he smirked and said, “I’ve been wearing a lot of hats lately.” Now the comment makes a little more sense. Today (January 23, 2014), the Association of Surfing Professionals announced that the former Billabong Global Vice President of Marketing (and former ASP Tour Judge) is taking the roll of chief strategy officer for the organization.
Stapelberg will support ASP CEO Paul Speaker and the executive team across multiple divisions of the organization as professional surfing enters into a new era of its existence as a global sports league. . . “Graham has exhibited excellence in virtually every sector of the sport throughout his celebrated 20 years of involvement,” Speaker said. “His extensive experience across events, sponsorships, athletes, judging, operations, finances, marketing, media and activations both inside and outside the industry will prove invaluable as we grow professional surfing in exciting new ways. We’re very fortunate to have Graham with us and we look forward to accomplishing great things together.”
Guess it’s now okay for any remaining surfers in the Billabong building to pack up and head out. For the ASP, however, this is another great move in a positive direction. Especially if they hope to replace all those surf fashion sponsorships with money from the real world. For the official word from the ASP, follow the jump. [click to continue…]
by The Editors on January 13, 2014
Click here for our Agenda Show Photo Gallery.
Tim Gavin was on the front steps of the Long Beach Convention Center with a couple of friends when we rolled up for the Agenda Show on the morning of January 7, 2014. He was wearing a Filament T-shirt and telling another friend to be sure and come by the booth. “Stop by later,” he said. “It’s booth N-13.”
It likely wasn’t his plan (we didn’t even speak with him), but the industry veteran put us in an optimistic mood from the start. If Gavin were a different sort of man we’re sure he could come up with plenty of excuses to stay away from what is now the largest action fashion and skateboarding show on the West Coast. He’s done this gig before. He’s built and run extremely successful brands (DVS, Matix) and he’s seen them slip away into “reorganization.” But there he was, out front at the show with a new skate shoe brand and a head full of lessons learned the last time around.
It’s seems 2013 is the year of rebirth for many people. Paul Naude is in a similar, though much more high profile, position himself. After building the Billabong USA business up from next to nothing after licensee Bob Hurley started Hurley International in 1999, Naude saw the ship he helped sail nearly sink in heavy financial seas. After a failed attempt to buy Billabong, Naude could have taken some time to “pursue other interests,” however he was out in the Agenda Show aisles putting his considerable reputation and might behind two new brands Vissla and D’Blanc and helping action women’s fashion veterans Mandy Fry and Summer Rapp with their soon-to-launch women’s line.
Click here for our Agenda Show Photo Gallery. [click to continue…]
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 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 April 22, 2013
Billabong has reportedly wrapped up their exclusive talks with Paul Naude and his Sycamore Partners bakers and now it’s time for them to make a decision, according to a story in The Australian. They could make an announcement sometime today. But some analysts don’t like the deal at all.
Credit Suisse research analyst Grant Saligari has said the 60c offer is a weak one for shareholders, and he criticised Billabong’s decision to allow the Sycamore consortium to have exclusive access to its books after months of due diligence studies and without dropping any of the conditions attached to the proposal. . . The consortium has made its offer conditional on there being no material adverse change in the company’s performance, availability of funding and a minimum 15 per cent of Billabong shares being swapped for scrip in the new holding company.
Guess we’ll all know when we know.
[Link: The Australian]
by The Editors on April 15, 2013
If the Paul Naude driven Sycamore Partners deal for Billabong goes through company founder Gordon Merchant would lose about $960 million in value, according to a story on Goldcoast.com.au.
At the company’s peak in 2007, his shareholding was worth close to $1 billion but, based on the 60 a share offer, he will have $960 million wiped from his 15 per cent stake, now worth about $40 million. . . The deal may save the beleaguered retailer from annihilation but it’s a massive plunge from the $4 billion the company was once worth in 2007, when its shares touched $18.51. . . It will now be up to shareholders to decide whether they want to end their years of takeover fatigue, accept the offer and get out while they can.
Hey, but on the upside that $960 million loss is really only on paper. . .
[Link: Goldcoast.com.au]
by The Editors on March 13, 2013
Billabong, which doesn’t appear to be in the driver’s seat with much of anything when it comes to its own financial situation, has laid down the law to its two suitors. Paul Naude (and friends) and VF Corp reportedly have until March 28, 2013 to make their final bids, according to a story on The Wall Street Journal. And then Billabong will just, well, they’ll just wait until someone makes them a lower offer later like they did last time. Because as we all know:
Billabong is battling to reverse an earnings decline triggered by the global slowdown, a strong Australian dollar that has diluted overseas income, and the dwindling appeal of its core brands among younger people. Sales in the Americas and Europe have fallen sharply as cautious consumers rein in spending or switch to other brands, leading to a build up of surplus clothing stock.
Aside from all that a deadline is a deadline, damnit!
[Link: The Wall Street Journal]
by The Editors on February 21, 2013
We just breezed over Billabong’s half year financial results for the six months ended December 31, 2012 and found a few things interesting and not all that surprising items. Here they are:
• Previously announced due diligence by Paul Naude and VF Corp is expected to conclude next month
• Sales fell in the Americas by 5.3 percent (blame Canada)
• Billabong lost AUS$ 536.6 million in the last six months.
• There will be no dividends paid in 2013
• Full year EBITDA guidance is now “in the range of $74 million to $85 million” as opposed to the “$85 million to $92 million” range reported in December.
• The performance of Nixon has not met expectations
• Trading conditions in Europe are difficult
Guess that analyst was right. For all the details follow the jump. [click to continue…]
by The Editors on February 8, 2013
Just when we thought it was almost too quiet at Billabong, comes news that former Billabong USA CFO Peter Bryant will “will steer an overhaul of the company’s reporting and operational structures,” with a title of group executive for commercial operations, according to a story in The Australian.
Chief executive Launa Inman has set out a strategy for the company to move from a regionally-based structure to a single global business. . . Mr Bryant, who has been with Billabong since 2004, was in December drafted to fill in for chief financial officer Craig White, who quit after the company delivered its third profit warning in 12 months.
Sounds like Bryant will be able to set things up nicely for Paul Naude (of VF Corp) if either should win the takeover war.
[Link: The Australian]
When we spoke to Graham Stapelberg at the Agenda Show two weeks ago and asked him how things were going at Billabong, he smirked and said, “I’ve been wearing a lot of hats lately.” Now the comment makes a little more sense. Today (January 23, 2014), the Association of Surfing Professionals announced that the former Billabong Global Vice President of Marketing (and former ASP Tour Judge) is taking the roll of chief strategy officer for the organization.
