After a shocking announcement that sent ripples across the retail industry, Quiksilver, Billabong, and Volcom will no longer have their stores in the United States. This announcement comes right on the heels of an operator filing Chapter 11 bankruptcy on February 2, 2025, to shut down operations of all the chains’ stores nationwide. The shutdown will include more than 100 US locations and take one step further toward rock bottom for what used to be a couple of iconic surf and skatewear retailers.
Bankruptcy filing and store closures
The Brands, which operates the retail chains for Quiksilver, Billabong and Volcom, filed Chapter 11 bankruptcy protection with Delaware District Court. Supply chain disruptions and more aggressive competition from fast-fashion retailers were among the perfect storm of macroeconomic challenges cited in the filing as primary reasons for declining profitability. The Company has announced it is closing 124 US stores and eliminating nearly 1,400 positions.
It has begun a liquidation sale, though the company would not provide timelines for closure with regard to each location. Also, negotiations pertaining to the nine locations it operates in Hawaii were still pending.
Challenges that led to bankruptcy
In court filings related to the bankruptcy, CEO Todd Hymel listed a litany of issues that put “significant pressure” on Liberated Brands’ costs and revenues. A “dramatic rise in interest rates, persistent inflation, and supply chain delays.” He also cited pressure from fast-fashion competitors that can help consumers “cheaply, quickly, and easily order low-quality clothing garments,” thus rapidly moving into micro-trends that brick-and-mortar retailers cannot keep up with.
Transition of brand licenses
Licenses for the brands Quiksilver, Billabong, and Volcom will, in contrast, stick around. This is after ABG has allowed other operators that can still manage to make output of the said brands, for further distribution thereof. ABG called the stores “over inflated and burdened with outdated and underperforming locations.” The respective apparel brands under the license grants going forward, will be distributed through specialty retailers, department stores, and digital channels to provide “a more agile and resilient future.”
Increased retail impact
The move adds Quiksilver, Billabong, and Volcom to a still-growing list of retailers which have shuttered locations this year. Other big chains, including Kohl’s and Macy’s, were among the companies to close stores this year. More than 15,000 store closures are expected in 2025, more than double from last year, according to an estimate by industry analysts.
