Quiksilver files for Chapter 11 bankruptcy for U.S. units

Wed Sep 9, 2015 2:35am EDT
 
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(Reuters) - Struggling surfwear maker Quiksilver Inc ZQK.N said it filed for Chapter 11 bankruptcy protection for its U.S. units on Tuesday.

The company said it listed assets of more than $100 million and liabilities of more than $500 million in the filing.

The European and Asia-Pacific businesses are not part of the filing as those "operations remain strong," Quiksilver said.

Quiksilver added that holders of its Eurobonds, sufficient to waive any technical default arising from the filing, had agreed to allow it to reorganize its U.S. operations under Chapter 11.

The company said it had requested the court to approve $175 million in new debtor-in-possession financing with affiliates of private equity firm Oaktree Capital Management and Bank of America.

The company's shares had lost nearly 80 percent of their value this year by Tuesday's close at 45 cents.

Quiksilver, which sells apparel such as broadshorts and t-shirts styled after surfing and skateboarding, has been losing customers to fast-fashion retailers like Hennes & Mauritz (HMb.ST: Quote).

Bloomberg reported last week that Quiksilver was trying to get bidders for a management-led buyout and that Authentic Brands Group could be interested if no strategic buyer came through.

Quiksilver, which had a market capitalization of $78.14 million as of Tuesday's close, said it hired FTI Consulting Inc FCN.N as its restructuring adviser and Peter J. Solomon Company as its investment banker.   Continued...