Billabong (clothing)

Billabong International Limited
Company type	Public (until 2018)
Industry	Surfwear and sportswear
Founded	January 1, 1973; 53 years ago in Gold Coast, Queensland, Australia
Founder	Gordon Merchant, Rena Merchant
Defunct	2018 (acquired)
Fate	Acquired by Boardriders, Inc. in 2018
Headquarters	Gold Coast, Australia
Area served	Worldwide
Key people	Neil Fiske (CEO from 2013)
Products	Surf-inspired clothing and gear, including boardshorts, wetsuits, t-shirts, backpacks, watches; skateboarding and snowboarding products
Parent	Boardriders, Inc. (since 2018)

Billabong International Limited is an Australian enterprise that focuses on surf-inspired clothing and gear, including boardshorts, wetsuits, t-shirts, backpacks, watches, as well as skateboarding and snowboarding products under multiple brand names. Established in 1973 by Gordon and Rena Merchant on Queensland’s Gold Coast, Billabong became publicly traded on the Australian Securities Exchange in August 2000. The term "Billabong" is derived from the Wiradjuri language word bilabaŋ, which refers to a seasonal creek.

By 2013, Billabong's brand portfolio featured notable names such as Von Zipper and Element Skateboards, alongside Honolua Surf Company, Kustom, Palmers Surf, Xcel, Tigerlily, Sector 9, and RVCA. In 2018, Billabong was acquired by Boardriders, Inc., the parent company of its competitor Quiksilver.

After experiencing a downturn beginning in 2008, Billabong faced multiple takeover bids starting in late 2012, involving former U.S. chief Paul Naude. The company undertook a strategic corporate restructuring that led to restored profitability by 2014.

In December 2016, then-CEO Matthew Perrin was found guilty of fraud and forgery connected to his time at Billabong and received an eight-year prison sentence in January 2017.

Early history

Billabong was created in 1973 on the Gold Coast of Queensland by Gordon and Rena Merchant. Their initial product line consisted of board shorts made at home featuring triple-stitched seams for enhanced durability, which gained traction in local surf outlets. Sponsoring surfing competitions helped increase brand recognition, resulting in nationwide distribution by the 1980s.

During the late 1980s, Billabong expanded its reach internationally into countries such as New Zealand, Japan, and South Africa. The surf industry's robust growth throughout the 1990s facilitated Billabong’s further expansion, culminating in its listing on the Australian Securities Exchange in 2000 to support additional growth initiatives and acquisitions.

Acquisitions

In the early 2000s, Billabong pursued growth through acquiring complementary brands and retail chains to broaden beyond wholesale operations. In 2001, it incorporated eyewear brand Von Zipper and skate apparel/hard-goods brand Element into its portfolio.

The acquisition of Palmers Surf in 2004 brought Kustom surf footwear into Billabong's offerings. In 2005, the company added Nixon Inc., a watch and accessories label aimed at board-sports enthusiasts.

In 2007, Billabong expanded into wetsuits and technical watersports gear by acquiring Xcel and entered the women's market more deeply through Tigerlily, enhancing its existing female-oriented products.

The company continued its acquisition spree in 2008 by purchasing Gold Coast retailer Kirra Surf; Quiet Flight, a US East Coast retailer with 14 stores; skateboard brands Sector 9 and Gullwing; plus accessories brand DaKine, expected to contribute approximately 4% to group sales during 2008-09. Later that year, Billabong acquired UK-based retail chain Two Seasons.

In 2009, Billabong acquired Swell, an American online retailer specializing in board-sports equipment. The following year saw a decade-long licensing agreement with Plan B Skateboards alongside collaboration with Element. Retail acquisitions included American Becker Surf and Sport (excluding surfboards) and Canadian action sports retailer West 49.

Further diversification occurred in July 2010 with the purchase of apparel brand RVCA, whose founder appreciated Billabong's commitment to preserving brand autonomy. By the end of 2010, Billabong expanded its retail presence by acquiring Australian stores Surf Dive ‘n' Ski and Jetty Surf from General Pants Group.

Collapse

On 16 February 2012, Billabong requested a suspension of its share trading following announcements of a A$776 million acquisition proposal from the US private equity firm TPG Capital. The next day, the company revealed a significant restructuring plan that included shutting down as many as 150 stores worldwide and cutting around 400 full-time positions, with 80 roles affected in Australia alone. Additionally, Billabong divested approximately 48.5% of its Nixon watches and accessories division to Trilantic Capital Partners, creating a joint venture that generated net proceeds near US$285 million (A$265.78 million) intended to lower company debt. During February 2012, TPG Capital submitted two takeover bids, both declined, including opposition from shareholder Gordon Merchant, who holds a 15% stake in Billabong.

On 27 August 2012, CEO Launa Inman announced a strategic four-year blueprint aimed at achieving positive sales momentum and profit growth by streamlining operations, capitalizing on the Billabong brand strength, and improving supply chain and e-commerce functions. These measures were projected to require an investment of roughly A$80 million. By September 2012, competition for ownership between private equity firms TPG Capital and Bain Capital intensified.

Takeover

By June 2013, Billabong was nearing completion of a takeover agreement with US private equity investors but ultimately failed to finalize terms with Altamont Capital Partners and Sycamore Partners after negotiations lasting 16 months. In July 2013, two US hedge funds challenged Altamont’s accepted bid by proposing a debt-for-equity conversion that would grant them a controlling 60% stake; however, Billabong dismissed this conditional offer.

In August 2013, Billabong evaluated an alternative proposal from hedge funds Centerbridge and Oaktree, which featured a higher purchase price and more favorable loan interest rates compared to Altamont’s US$300 million loan offer. This news caused shares to climb by 6.8%. Later that month, despite ongoing persuasion attempts by Centerbridge and Oaktree to present their superior offer to the board, Billabong planned to move forward with Altamont and Blackstone’s US$325 million refinancing package. Chairman Ian Pollard highlighted the need to concentrate on restoring financial stability following a period of disruptive distractions.

Pollard remarked in late August that while acceptance of the hedge funds’ bid seemed unlikely, it was still under consideration. By September 2013, the agreement with Altamont had expired; Billabong sought shareholder consent for a deal involving Centerbridge and Oaktree, who would assume control over most senior debt, acquire up to 40.8% equity ownership, and appoint three directors to the board. Concurrently, Neil Fiske was named CEO as Billabong pursued divestment of Canadian skateboard retailer West 49.

In November 2013, West 49 was sold to fashion retailer YM Inc. for an estimated CA$9–11 million. Alongside this sale, Billabong entered into a two-year wholesale contract valued at approximately CA$34 million encompassing 92 retail locations across Canada.

In January 2014, Oaktree Capital Management and Centerbridge Partners completed refinancing of Billabong’s debt in exchange for a 40.8% ownership share. The company also disclosed intentions to divest its majority stake (51%) in SurfStitch as well as its entire interest in Swell, with advisory support from Guggenheim Securities.

Restoration of Profitability

When the company went public in 2000, its revenue stood at A$225 million, expanding to A$1.7 billion by 2011. Earnings reached their highest point at A$249 million in 2007. Nevertheless, for the six-month period ending December 2011, net profit plummeted by 71% to A$16.097 million.

By early 2013, Billabong disclosed significant declines in earnings across its primary markets, reporting a loss of A$536.6 million for the half-year ending December. The full fiscal year 2013 saw a net loss of A$859.5 million, with the Billabong brand’s valuation dropping to just A$90 million by June 2013. Worldwide sales fell by 13.5%, totaling A$1.34 billion for the 2012–13 financial year. The company managed to return to profitability in 2015, recording a net profit after tax near A$25.7 million—marking its first profitable year since 2011.

In April 2023, Authentic Brands Group submitted a binding bid to acquire Boardriders, Inc.—the parent company of Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element, Von Zipper, and Honolua—from Oaktree Capital Management for US$1.25 billion. This acquisition was completed in September 2023.

Liberated Brands Bankruptcy

On February 2, 2025, Liberated Brands, which operates Billabong retail outlets in the United States, filed for Chapter 11 bankruptcy protection, disclosing assets and liabilities ranging between $100 million and $500 million. The company announced it would close all remaining Billabong stores across the US, with liquidation sales having commenced one week prior to the filing. Ownership of the brand remains with Authentic Brands Group.

Awards

During the Q150 celebrations in 2009, Billabong was honored as one of Queensland’s Q150 Icons for its significant contribution as a symbol of "innovation and invention."

Teams

Billabong supports athlete teams across various cultural segments who act as brand representatives. As of August 2013, the skateboard team was discontinued; however, investment in surfing increased considerably, with Billabong now backing hundreds of surfers.

External links