Update on Quiksilver bankruptcy

Huntington Beach, Calif. -- Quiksilver Inc. has got the OK on financing and on some store closures.



Quiksilver Inc. has received preliminary approval from bankruptcy court for a $175 million bankruptcy financing package. The surf apparel chain filed for Chapter 11 protection on Sept. 9.



The package is linked to a debt-for-equity swap that would give Oaktree Capital Management control of the restructured surfwear company. (As previously reported, Quiksilver’s European and Asia-Pacific businesses and are not part of the filing.)



The approval gives Quiksilver immediate access to $115 million of the $175 million financing. The company anticipates that the financing, in conjunction with other existing sources of liquidity, will be more than needed to fund its ongoing operations.



The retailer also got preliminary OK to continue closing 27 underperforming stores and liquidating extra inventory. Quiksilver has an agreement with Hilco Merchant Resources and Gordon Brothers Retail Partners to hold going-out-of-business sales at the stores.



“We are grateful that the court was able to consider these motions promptly, and the relief granted ensures we will be able to continue to operate in ordinary course and deliver on our commitment to providing customers the same great experience with our brands and products they have come to expect,” said Pierre Agnes, CEO of Quiksilver. “We look forward to implementing our restructuring plan in the U.S. to strengthen the business and we will emerge a stronger business, better positioned to grow and prosper into the future.”



Quiksilver currently has 122 stores in the United States.