If you were into mall culture in the early 2000s, you probably remember Quiksilver, Billabong, Roxy, and Volcom. Unfortunately, the chains’ parent company, Liberated Brands, has filed for Chapter 11 bankruptcy.
As a result, more than 100 locations across the US will be shutting down.
The company has “worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living and inflationary pressures have all taken a heavy toll,” Liberated Brands said in a statement.
In the bankruptcy filings, CEO Todd Hymel claimed a “dramatic rise in interest rates, persistent inflation, supply chain delays” created “significant pressure” on the company. They also point the finger at fast-fashion brands that can “cheaply, quickly, and easily order low-quality clothing garments.” These brands using drop ship models allows them to engage in emerging and micro-trends that brick-and-mortar operations cannot mimic.
Despite the physical locations closing, Quiksilver, Billabong, and Volcom will continue to exist. Authentic Brands Groups, Liberated’s parent company, will transition the licenses to another operator. The company believes that the stores were “overinflated” and “burdened with outdated and underperforming locations,” Authentic explained to CNN. Quiksilver, Billabong, and Volcom will transition to only being sold at specialty retailers, department stores, and online. “[E]nsuring a more agile and resilient future” for the currently struggling lines.
This adds to the ever-growing list of traditional brick-and-mortar operations that will be closing in 2025. Retailers Kohl’s, Macy’s, Big Lots, and Party City, to name a few will also be closing up shop. Many would guess this is due to the ever-rising cost of living paired with stagnant wages making it almost impossible to survive in the US. But we aren’t economists so what do we know?
