Shulman Hodges & Bastian LLP
949-340-3400|949-427-1654

Quiksilver to emerge from Chapter 11 bankruptcy

In a prior post, we highlighted how retailers were less likely to emerge from Chapter 11 bankruptcy compared to the past because of changing market forces and the proliferation of companies that are willing to facilitate "going out of business" sales to protect unsold assets. 

However, despite the increasing difficulties facing troubled retailers, there are some bankruptcy success stories. The plight of apparel maker Quiksilver appears to be one of them.

We reported on Quiksilver's Chapter 11 filing in November, 2015. Since then, the company has forged a plan that will allow it to restructure more than $600 million in debt, that may allow the company to successfully emerge from bankruptcy as soon as next month. 

The restructuring is a monumental effort itself, but according to a Footwearnews.com article, Quiksilver apparently began its restructuring plan long before it filed a bankruptcy petition. Indeed, the company struggled since the 2008 recession, but it started focusing on strengthening its brand, improving operational efficiencies and reducing its cost structure.

It did so by selling its snowboard manufacturer in 2013 as well as Hawk Designs in 2014.  This way, it ostensibly was able to focus on its Roxy and DC Shoes brands and the more than 700 stores across the United States.

The sponsor for Quiksilver's Chapter 11 plan is Oaktree Capital Management. The story exemplifies how a retailer can emerge from bankruptcy with the proper legal advice and guidance.

If you have questions about restructuring debt through bankruptcy, an experienced attorney can help. Please contact us at Shulman Hodges & bastian LLP via email or phone (949-340-3400) to speak with our debt restructuring or bankruptcy attorneys if you or your company are facing difficult times financially. 

No Comments

Leave a comment
Comment Information

Irvine
Shulman Hodges & Bastian LLP
• 100 Spectrum Center Drive, Suite 600 • Irvine, CA 92618
• Local: 949-340-3400 • Fax: 949-340-3000 • Map & Directions
or contact us at 949-427-1654

Riverside
Shulman Hodges & Bastian LLP
• 3550 Vine Street, Suite 210 • Riverside, CA 92507 
• Local: 951-275-9300 • Fax: 951-275-9303 • Map & Directions
or contact us at 949-427-1654

Map