Billabong brand deemed worthless as losses soar
The Australian group, former in 1973 by surfer Gordon Merchant, has closed 158 underperforming stores in a bid to turn its fortunes around, and chairman Ian Pollard said it was just weeks away from finalising a crucial debt restructuring to put it on a firmer financial footing.
He added: “We are nearing the end of a long process that has caused distraction, impacted on staff morale and has been very costly.”
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Hide AdLosses for the year to June swelled to A$859.5 million (£495.8m), from A$275.6m the previous year, after taking A$867.2m in writedowns.
As well as writing off the value of the Billabong label, the group said its Element skateboard brand – which sponsors Jackass star Bam Margera – was also worthless.
Sales fell 13.5 per cent to A$1.3bn, reflecting store closures in the Americas and Australasia, and “extremely challenging” economic conditions across Europe.