The unlocked brand filed for Chapter 11 bankruptcy protection over the weekend and aims to close US retailers that sold brands such as Quiksilver, Billabong and Volcom.
The company said in a press release Monday it filed for bankruptcy in order to “enforce orderly monetization and disposal of the company.” As part of the bankruptcy proceedings, we filed a filing with the US Bankruptcy Court for the Delaware District to close around 124 stores.
Liberated estimated the assets in the Chapter 11 Bankruptcy Petition range from $100 million to $500 million. The estimated liabilities were the same.
The company said the US stores will “begin efforts to bring an end to US retailers,” but will eventually close the shutters once the liquidation sales process is complete. Liberation also has nine locations in Hawaii, with its status “currently negotiating.”
CEO Todd Heimel said, “A rapid and dramatic increase in interest rates, sustained inflation, delayed supply chains, reduced customer demand, declining historical trends, changing consumer preferences, substantial fixed costs, and more. , macroeconomic issues, including macroeconomic issues.” He was heavily focused on the company's finances.
Liberated has been holding licenses for Quiksilver, Billabong, Roxy, RVCA and other genuine brand-owned brands since late 2023, and has been added to what it already had for volcom, Hymel said in its submission. Masu. According to the CEO of Liberated, Noliborted Volcom, RVCA and Billabong's operating licenses ended in December last year “as a result of Liberated's defaults under the associated license.”
A court application indicated that these licenses had been transferred to a new operator. This means that consumers still have access to those clothing brands.
“Authentic will transfer licenses on rare occasions where partners are unable to fulfill their commitments,” said David Brooks, executive vice president of Authingic Brands, in a statement from Fox Business. “To that end, we are working closely with the brands that have been released to considerately transfer key licenses to trusted operators within our network.”
Brooks said the liberated US store fleet is “over-inflated and burdened in outdated, unperforming places,” adding that “probably streamlined, brands create more value, and specialized retail He said it is likely that it will be able to strengthen its presence through dealers, department stores and e-commerce. An agile, resilient future.”
Liberated said the liquidation and sales process for U.S. stores has already begun.
