Quicksilver Files for Chapter 11 Bankruptcy

by San Antonio Attorney

Surf wear company Quicksilver has sought for bankruptcy protection in a United States court after its market value suffered major losses this year.

The retailer was founded in 1969 but now headquartered in California, and operates in 100 countries worldwide.  Quicksilver board shorts started the surf board fashion trend in the 1970’s and were considered to be rather revolutionary in that decade. They made board shorts that had a Velcro fastening and used long-lasting quick-drying cotton.

But after it peaked in the 1990s, Quicksilver has dealt with growing competition, mainly in the U.S.

Quicksilver Inc. was listed on the Stock Exchange in 1986. However, the company is facing delisting because its share price dropped very low earlier this year.  Shares have delved nearly 80 percent as the company struggled with both accounting and shipping issues. As of Wednesday, trading in shares was halted.

The Chapter 11 bankruptcy filing only includes its U.S. operations. Quicksilver Inc. listed about $100 million in assets and around $500 million in liabilities in its filing.

Chapter 11 bankruptcy allows a business to maintain its operations while it carries out a restructuring plan.  Quicksilver has asked the court to authorize its deal with Oak tree Capital Management to finance over $175 million for the reorganization.  The court is yet to approve the deal.

Quicksilver CEO Pierre Agnes said the company filed for bankruptcy to protect its future.  The Bankruptcy Code provides such protection and the funding from Oaktree will help them pay their creditors while it is reorganizing its business.

Quicksilver also owns DC shoes and boots and Roxy Clothings.

The company plans to proceed with its store-closing plan in the country.  It is expected to report its financial results for third-quarter today.

Deciding to file for bankruptcy can be a difficult decision, but in certain situations there is no other option. To protect yourself and your business, consult an experienced San Antonio attorney about this course of action before making the decision.

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