An analyst on Tuesday threw cold water on the prospects of Huntington Beach-based Quiksilver Inc. selling part or all of the company as it seeks to restructure its debt in February.
The clothing maker’s shares opened down about 15% Tuesday on a market value of $240 million after surging 30% Monday on speculation it could sell its DC Shoes business to North Carolina’s VF Corp.
There’s also been speculation that Quiksilver itself could be up for sale as the company wrestles with $1 billion in long-term debt.
But Quiksilver’s bid to rework some of its debt makes it less likely the company will sell some of its brands or even all of the company, according to Brandon J. Ferro, an analyst with KeyBanc Capital Markets part of Cleveland-based KeyCorp.
In December, Quiksilver said it is working with its lenders in Europe to refinance debt, including a $71 million credit line due in March. It also said it expects to strike a $20 million credit line in Australia and is working on a loan with its U.S. lenders.
The company on Monday said it continues to work on those efforts and is on track to restructure debt by February.
Quiksilver also said it will cut 200 jobs in a plan that will save $40 million annually, taking $5 million in charges for the three months through January.
The Business Journal and trade publication Women’s Wear Daily reported Monday about speculation that Quiksilver could sell DC Shoes as part of its bid to reduce debt.
DC Shoes does about $475 million yearly sales and was the fastest-growing part of Quiksilver in the three months through October.
The company didn’t comment Monday on DC Shoes speculation, or a related rumor about a bid for the entire company from Nike Inc.
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