Billabong to close 82 stores after profit slide

Surfwear brand Billabong is in dire straits after the

company posted a full year loss of 275.6 million dollars. It confirmed it is due to close 82 stores in the next 12 months in order to cover its losses.

The company is hoping a four-year turn around strategy will bring it back to profitability as it saw losses up to 331 per cent after it earned 119.1 million dollars in 2011. The company expects trading to be difficult over the coming year.

Chief executive Launa Inman announced the group's forward strategy, which aims to return the company to positive sales growth in the next four years. Key tasks will include stabilising the brand, simplifying the retail business, leveraging its brand power, expanding its online business and globalising the supply chain.

Ms Inman last month warned that the company was in the process of closing 150 under-performing stores, with the future of a further 85 under consideration.Billabong last month agreed to allow TPG to conduct due diligence, but told shareholders there was no guarantee that a deal would be reached.

"The group is well on track in implementing the initiatives outlined in the previously announced strategic capital structure review and will continue to implement a number of new strategic initiatives announced today as part of Billabong's transformation strategy,'' she said.