The wave of retail closures rippling across the country has caught up with a trio of surfer-skater favorites. Liberated Brands, the operator behind Quiksilver, Billabong, and Volcom retail stores, has filed for bankruptcy, prompting over 100 U.S. store closures. These brands, once emblematic of the Millennial zeitgeist, are the latest victims of rapidly shifting retail landscapes. The collapse of these stores has been chalked up to the relentless rise of fast fashion and an unstable economy - a one-two punch sending these surf shops to wipe out.
Factors like an uncertain economic climate and escalation of competition from fast fashion rivals have been cited as key contributors to Liberated Brands' financial woes. Notably, the company attempted tirelessly to adapt and ride the wave of change but has been overwhelmed by a volatile economy and shifts in consumer spending amid rising living costs. In a statement obtained by Fortune, Liberated Brands acknowledged, "Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future."
The closure of the retail outlets also comes with a heavy human toll, as approximately 1,400 employees face layoffs. The fiscal blow these closures are dealing extends not only to these companies but also to the individuals and families behind the storefronts. Liberated Brands listed a staggering debt of $226 million in their bankruptcy filings, as reported by KTLA.
While storefronts are vanishing, the brands will still hang ten in the fashion world. Authentic Brands Group, the parent company, is shifting the licenses to another operator, ensuring that Quiksilver, Billabong, and Volcom will continue producing clothes. The move is poised to both streamline and give new life to these brands, with Authentic Brands aiming to sell the affected clothing lines through specialty retailers, department stores, and online channels. As noted by CNN, this strategy is planned to build "a more agile and resilient future" for the brands.
These closures add to the growing number of retail bankruptcies seen this year, including names like Party City and The Container Store. Surfer threads are joining the ranks of over 15,000 stores projected to shutter in 2025, as estimated by Coresight Research and reported by NBC News.
