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Quiksilver Cuts More Jobs

Orange County Business Journal Staff

Huntington Beach-based clothing maker Quiksilver Inc. has laid off 125 workers at its headquarters and elsewhere in Southern California as part of its ongoing cost cutting.

In all, 200 jobs were cut including 75 vacant positions at Quiksilver, which makes clothes inspired by surfing, skateboarding and snowboarding.

The cuts came at Quiksilver’s America unit, including at its Roxy brand for young girls and women and DC Shoes, a maker of shoes and clothes inspired by skateboarding.

Cuts also came at the company’s Mira Loma warehouse.

Earlier this year, Quiksilver cut 200 jobs. The latest cuts bring Quiksilver’s layoffs to more than 700 in the past two years as its deals with the worst retail downturn in recent memory and its own financial issues.

In June, Quiksilver struck a lifesaving investment and loan deal after 2005’s $560 million ill-fated buy of French ski maker Rossignol.

Quiksilver unloaded Rossignol in a $50 million fire sale late last year but was left by $1 billion in short- and long-term debt from the deal and borrowing to keep Rossignol afloat before the sale.

France’s Rhône Group LLC is lending Quiksilver about $150 million over five years to help the company refinance a U.S. line of credit and consolidate its European debt.

The deal included $25.6 million in warrants that allow Rhone to buy about 20% of Quiksilver’s shares.


  Feb. 8-14, 2010
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