Quiksilver Inc. in Huntington Beach is holding discussions with potential buyers in an effort to avoid bankruptcy and keep its stores, Bloomberg Business reported today, citing sources close to the matter.
The apparel and footwear manufacturer last month appointed Peter J. Solomon Co. in New York as an adviser. The same firm helped it raise funds in 2009 for additional liquidity and to pay down existing debt.
Authentic Brands Group LLC in New York “could be interested in the Quiksilver name,” according to Bloomberg. Authentic is part of private equity firm Leonard Green & Partners L.P.’s investment portfolio, which also includes Advantage Sales and Marketing in Irvine. It owns brands such as Juicy Couture and Jones New York, the latter of which it acquired in April.
The New York Stock Exchange on July 10 notified Quiksilver that its stock wasn’t in compliance with the continued listing standard that requires a minimum average closing price of $1 per share over 30 consecutive trading days. It was a first warning for the company, which went public in 1986 and whose stock traded as high as $9 in 2013.
Its second-quarter revenue dipped to $333 million. It chalked up a loss of $88.9 million on 2014 sales of $1.57 billion and pulled guidance for the rest of fiscal 2015. Its market value this week was about $77.3 million.
Quiksilver said it plans to report fiscal third-quarter financial results after the market closes on Sept. 9.
