In the first week of February 2025, Liberated Brands – Quiksilver, RVCA, and Volcom‘s mother company-filed bankruptcy protection under Chapter 11. With this move, a lot of questions are in the minds of fans and customers regarding the future of the company.
Why did Liberated Brands file for bankruptcy?
Costa Mesa, California-based Liberated Brands filed for bankruptcy because they had been facing financial troubles for a while. The company listed $226 million in debt and was forced to shut its corporate offices, laying off about 1,400 employees. The brand finally made the decision to file Chapter 11 bankruptcy after it defaulted on licensing agreements with Authentic Brands Group, which owns the brand names. It lost its licensing rights because of this default, adding to the brand’s financial woes.
What happens to Quiksilver, RVCA, and Volcom stores?
When Liberated Brands filed for bankruptcy, the company said it planned to close more than 120 stores across North America. Liquidation sales are underway as a last chance for customers to buy merchandise from the locations. It is worth mentioning that though these physical stores are closing, the brands are not precisely going away: ABG owns the brand names and is actively seeking new partners to continue the legacy of Quiksilver, RVCA, and Volcom.
Will the brands continue online or in other stores?
Yes, there’s a fair chance that the products of Quiksilver, RVCA, and Volcom will still be available online and through other retail points. ABG has traditionally rejuvenated brands by re-partnering them with new operators who are capable of investing in product innovation and marketing. For example, O5 Apparel, which currently handles Quiksilver’s wholesale business in North America, will distribute Billabong men’s and women’s apparel. Similarly, The Levy Group, holding the licenses for Roxy Swim and outerwear, now handles the distribution of Volcom. These moves have been put in place to ensure that such products remain available for their fans, even if some stores are closing down.
Read more: Struggling fast-food restaurant chain files for Chapter 11 bankruptcy
How does this affect employees and sponsored athletes?
With the current situation -bankruptcy and restructuring – employees and the sponsored athletes are concerned. Several employees have already been laid off due to store closures and corporate downsizing. The sponsored athletes and brand ambassadors could face changes in their contracts or support, depending on how the new operators want to handle such relationships. The full extent of these impacts will get clearer as ABG finalizes partnerships with new operators.
What should customers expect moving forward?
Customers should get ready to take advantage of the liquidation sales. It is expected that, in the future, other retailers and online platforms will also stock and sell Quiksilver, RVCA, and Volcom products. ABG’s strategy overall is around sustaining and growing these brands in concert with partners who can bring energy and resources. Times are hard, but the goal remains to hold these iconic brands in the action sports and lifestyle apparel marketplace.
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