Surf and Skate Retail Shakeup: Billabong, Quiksilver, and Volcom Stores to Close Across the US

written by a member of the WCB

In a significant shift for the surf and skate retail landscape, Liberated Brands LLC, the operator of popular brands Billabong, Quiksilver, and Volcom, has filed for Chapter 11 bankruptcy. This move will result in the closure of all their US retail locations, marking the end of an era for these iconic surf and skatewear brands' physical presence in the American market.

Key Points

1. Bankruptcy Filing: Liberated Brands LLC filed for Chapter 11 bankruptcy protection on February 4, 2025, in the US District Court of Delaware.

2. Store Closures: Approximately 124 retail locations across the United States will be shuttered, including stores under the Billabong, Quiksilver, Volcom, Spyder, RVCA, Roxy, and Honolua brands.

3. Financial Struggles: The company cited macroeconomic issues, including rising interest rates, persistent inflation, supply chain delays, declining customer demand, and shifting consumer preferences as reasons for their financial difficulties.

4. Debt Overview: Liberated Brands owes $83 million in secured debt and $143 million in unsecured debt.

5. Immediate Impact: As of February 16, 2025, the affected stores will no longer accept gift cards as a form of payment, both online and in-store.

6. Brand Continuity: Despite the retail closures, the brands themselves are not disappearing. Authentic Brands Group, the parent company, has transitioned the licenses to new operators to ensure the brands' continuity.

7. Liquidation Sales: Store closure processes have already begun, with liquidation sales underway at various locations.

Industry Impact and Analysis

The closure of these iconic surf and skate brand stores reflects broader challenges in the retail sector, particularly for specialty apparel retailers. Fast fashion competitors, changing consumer behaviors, and the shift towards online shopping have all contributed to the difficulties faced by traditional brick-and-mortar stores.

Todd Hymel, CEO of Liberated Brands, stated, "The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll."

Future of the Brands

While the physical stores are closing, the brands themselves will continue to exist. Authentic Brands Group, which owns these labels, has already transitioned the licenses to new operators. David Brooks, executive vice president at Authentic Brands, explained, "To that end, we've been working closely with Liberated Brands to thoughtfully transition key licenses to trusted operators within our network."

The company aims to strengthen the brands' presence across specialty retailers, department stores, and e-commerce platforms, ensuring a more agile and resilient future for these beloved surf and skate labels.

Local Impact

For local surf and skate shops, the closure of these major brand stores might present an opportunity. Bryan Guter, owner of Emerald City Surf Shop in Coronado, California, noted that the bankruptcy has led to discounted spring orders, potentially helping local shops' margins. However, he also expressed concern about potential product availability issues in the future.

Consumer Reaction

Interestingly, some loyal surf and skate enthusiasts have expressed a preference for local shops over the big brand stores. Travis, a local surfer and skater in Ocean Beach, San Diego, mentioned, "I've never shopped at a Billabong store. I've never shopped at a Quiksilver store."

This sentiment was echoed by Will Fortin, another local surfer, who said, "More business for local stores like, taking away from the big brands, and you know they have too much money already so it's good for the little guys."

The closure of Billabong, Quiksilver, and Volcom stores marks a significant shift in the surf and skate retail landscape. While it represents the end of an era for these brands' physical presence, it also signals a transition towards a more diversified retail strategy. As the industry adapts to changing consumer preferences and economic challenges, the future of these iconic brands will likely involve a stronger focus on e-commerce and partnerships with specialty retailers and department stores.