Quiksilver: restructuring plan gets the green light

The apparel brand specialised in board sports announced on Thursday that the US courts have given the green light to Quiksilver's restructuring plan in the USA.

The plan provides for the group's exit from bankruptcy, its control to be taken by the Oaktree Capital Management investment fund which, together with Bank of America, agreed to bail out Quiksilver to the tune of $175 million, in exchange for an unspecified, though majority share of the stock.

Last September, Quiksilver declared its US subsidiary bankrupt, placing it under the protection of the well-known chapter 11 of US bankruptcy law. This allows a company in financial difficulties to continue operating normally, remaining sheltered from its creditors.

However, US legal procedure demands that the restructuring plan is approved by the courts. The hearing took place on Thursday before a bankruptcy judge at a Delaware court. The outcome was somewhat uncertain, since a group of creditors disagreed with the estimation of Quiksilver's assets. According to the US media, a deal has been struck between the two parties.

"The group's financial statement is now sound, and there are stable, long-term shareholders. Quiksilver can now implement its ambitious plan for regaining lost ground and expanding," stated Marie-Aurélie Duché, Quiksilver's spokesperson. According to Marie-Aurélie Duché, Pierre Agnes was confirmed as CEO.

Quiksilver stated that the group will exit bankruptcy "within the next ten days". Its sales have been declining due to competition by H&M and Uniqlo.

The restructuring will involve store closures and notably a reorganisation of the group's distribution network. The company is also expected to de-list from the Stock Exchange.

Quiksilver was founded in 1969 in Australia and is now based in California, and its share value plunged following its difficulties.