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.
TORQUAY, Australia — Oaktree Capital Management LP may consider combining bankrupt surfwear retailer Quiksilver Inc. with Billabong International Ltd., a brand the investment firm already owns a stake in, a judge in Delaware was told Wednesday.
Durc Savini, an investment banker at Peter J. Solomon Co. who is working with Quiksilver, testified that "at some point" Oaktree may put the clothing companies together if it's able to bring Huntington Beach, California-based Quiksilver out of bankruptcy under its control.
Savini added that he never directly approached Oaktree about a transaction with Billabong and that he doesn’t believe Billabong “has the balance sheet to support” such a deal. Oaktree owns about 20 percent of Australia-based Billabong.
Quiksilver is in court defending its proposal to borrow as much as $175 million from Oaktree and Bank of America Corp., part of a broader plan to have Oaktree covert its debt into equity and assume control of the company.
ADVERTISEMENT
The maker of surf-style clothing is seeking court approval of the financing over a competing proposal from Brigade Capital, which is championed by Quiksilver’s unsecured creditors.
The New York Post reported earlier that a Quiksilver-Billabong combination was being considered, citing a source close to the matter that it didn’t name.
The case is In re Quiksilver Inc., 15-11880, U.S. Bankruptcy Court, District of Delaware (Wilmington).
By Michael Bathon; editors: Andrew Dunn, Tiffany Kary.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.