Liberated Brands, which includes brands like Billabong and RVCA, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for Delaware. The company struggled to manage its licenses for these brands and estimates its assets and liabilities between $100 million and $500 million. The filing highlights significant unbranded creditor claims, particularly from foreign textile manufacturers.
In September 2023, Liberated Brands had transitioned its licenses for several former Boardrider brands to new North American licensees, which include companies like Quiksilver and Roxy. Following the bankruptcy application, Liberated’s U.S. retail stores, numbering over 100, have begun liquidation sales, with online sales offering discounts up to 60%.
Authentic Brands Group, which oversees the licensing, acknowledged the competitive market and emphasized the importance of partner support while exploring opportunities for reorganization and profitability. Despite the financial challenges, there is optimism for the continuity of the brands post-bankruptcy, as new partners have already shown interest in investing in growth.
The reorganization process is being supported by companies like JP Morgan and legal advisors Kirkland & Ellis, LLP. Overall, the company is navigating a difficult economic landscape marked by rising living costs and changing consumer behavior, but remains committed to its employees and brand continuity.
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