Three major surf retail stores, Quicksilver, Billabong and Volcom are closing nationwide as the parent company, Liberated Brands filed for bankruptcy earlier this week.
A rise in interest rates, persistent inflation, supply chain delays, a decline in consumer demand, a shift in consumer preferences, and substantial fixed costs were all listed as challenges the company has faced.
As part of court filing documents, Liberated CEO Todd Hymel submitted a 29-page statement detailing "a series of major headwinds and challenges."
The company listed debt of $226 million, with approximately 1,400 employees laid off.
"The Company has been further challenged by trends impacting the retail environment more broadly, including shifting consumer preferences for "fast fashion" and e-commerce as opposed to branded apparel and brick-and-mortar retail," Hymel wrote.
He went on to say that while profits rose during the COVID-19 pandemic as customer demand for outdoor apparel and online shopping spiked, shopping in-person at the stores never fully bounced back.
The brands, rooted in the surf, snow, and skate culture, will continue to produce clothing despite the more than 120 storefront closures.
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