The parent of Irvine-based Billabong USA announced the sale of its West 49 chain in Canada as the action-sports apparel company and retailer continues to focus on turning around its business.
Canada-based retailer YM Inc. is expected to pay between $8.59 million to $10.5 million for the 92-store West 49 chain. The two companies also signed a two-year, $32.5 million supply agreement. Billabong acquired West 49 in 2010 for $93 million.
Billabong said in the same announcement that $300 million of a $360 million loan with Centerbridge Partners LP and Oaktree Capital Management LP was received Nov. 1. The funding went toward repaying a $294 million loan from a group led by Palo Alto-based private equity firm Altamont Capital Partners.
The Altamont consortium funding was part of a deal that would have seen the group buy Billabong International. But the Billabong board ultimately went with a competing offer from the Centerbridge/Oaktree group.
Billabong also said board members Tony Froggatt and Colette Paull have retired.
―Kari Hamanaka
