The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
GOLD COAST, Australia — Billabong International Ltd., the unprofitable Australian surfwear company, accepted a refinancing proposal from a group including Oaktree Capital Management LP and Centerbridge Partners LP, saying it offered better terms than a rival plan to repay debt.
The agreement will allow Billabong to pay back a $294 million bridge loan from a consortium including Altamont Capital Partners, which had made the rival proposal, the Gold Coast, Australia-based retailer said in a statement today. The plan includes a six-year loan of $360 million, Billabong said.
Worth almost A$4 billion ($3.8 billion) at its peak in 2007, Billabong’s market value has tumbled to just A$216 million and the company said last month its 40-year-old surf brand was worthless. Billabong, which has struggled amid competition from major chains and a consumer spending slump, has fielded takeover or refinancing offers almost constantly since May 2012.
The agreement meets Billabong’s “need for immediate long-term funding certainty and a strong financial base,” the company said in today’s statement. Billabong named Neil Fiske as its new chief executive officer and managing director.
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Formed in 1973 by surfer Gordon Merchant, Billabong said last month its annual losses tripled to A$860 million following store closures, firings and a breach of debt terms.
Today’s agreement also includes a A$135 million equity placement to the consortium, Billabong said.
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