While surf brand Quiksilver is attempting to turn things around since their filing for bankruptcy, Oaktree Capital is looking to step in.
The Los Angeles-based investment firm is seemingly settling up to buy Quiksilver Inc. out of bankruptcy. Quiksilver filed with the U.S. Bankruptcy Court in September due to the retailer’s outstanding debts. In combination with Roxy and DC Shoes, the three brands had a total debt of 826 million dollars, as reported by Apparel News.
Oaktree already serves as the brand’s primary lender and according to reports by Bloomberg Business, the company plans to make more efforts to buy out the brand. The company is close to hiring AlixPartners LLP to advise on these plans to take over Quiksilver, according to the publication. AlixPartners will help advise Oaktree in “bidding for the retailer’s assets and mapping out and an operational plan.”
The reason the investment firm is able to take on Quiksilver is due to a financing agreed upon last month. Oaktree was able to win court permission to provide 175 million dollars in bankruptcy financing. Due to this, the company is now in a favorable position to take over the SoCal surfwear brand.
The company currently has about 680 retail locations in operation. Currently, the surf brand, known for its beach-infused apparel, footwear, and accessories is expected to close at least 30 of those stores, according to Apparel News.