Liberated Brands suffered a big nosedive in the past couple of months after losing licensing deals for iconic action sports brands like Billabong and Volcom.
As part of a company-wide restructuring, Liberated is shutting down its corporate offices in Costa Mesa with 363 employees at the apparel maker losing their jobs, according to a January posting from the state’s Employment Development Department.
Some of those employees are beginning to resurface at New York-based apparel firms that are opening offices in Orange County.
“We are encouraged to see that many of our talented employees are already interviewing with these new license holders as part of this management transition, ensuring continuity for the brands and their success moving forward,” Liberated told the Business Journal in a statement.
“The company is actively transitioning its brand licenses to new license holders.”
The big shakeup of a once prominent apparel company that had as many as 500 employees at one time began in mid-December when brand owner Authentic Brands Group of New York started reducing its licensing partnership with Liberated.
Authentic had acquired several of the brands in 2023 when it bought Boardriders for $1.2 billion from Oaktree Capital Management. At that time, Authentic assigned the brands to Liberated, which recently became overwhelmed by the extra business, according to industry insiders.
Shock Waves
Authentic in recent months began assigning new partners who were based in New York City to design, sell and distribute a few of the apparel brands. The move sent shock waves through the OC apparel industry, which is credited with growing the worldwide demand for clothing linked to action sports like surfing and skating.
Now, at least three of the New York licensees appear to be expanding their office footprints within OC to keep the brands close to the local action sports hub.
Billabong is going to O5 Apparel, which currently shares an office in Costa Mesa dedicated to Quiksilver – also owned by Authentic. With the new business coming in, O5 Apparel has signed a new lease for office space in Irvine.
“This proximity provides us with access to an incredibly rich pool of talent – designers, marketers and industry professionals who live and breathe this lifestyle,” O5 sales executive Ryan Mangan told the Business Journal in a Jan. 30 statement.
“Furthermore, keeping Billabong in Orange County honors its heritage and strengthens its connection to its roots in the U.S. marketplace. This authenticity is invaluable and is critical for maintaining brand credibility and engaging with the core surf and skate community.
“Orange County is where the brand belongs,” said Mangan, O5’s SVP and head of sales.
He also noted that O5’s primary focus is revitalizing Billabong and strengthening its brand identity.
“First and foremost, we’re committed to enhancing the product line, ensuring it reflects the latest trends while staying true to Billabong’s heritage,” Mangan said. “Product innovation is paramount.”
This strategy includes “investing in new designs” and “prioritizing sustainable materials to create compelling products,” he said.
O5 will also work to boost Billabong’s image “through targeted marketing campaigns and collaborations with athletes and key influencers” with a primary focus on the specialty surf market, he said.
“Our vision is to see Billabong reclaim its position as a leading brand in the surf and skate industry.”
Newer entity Ethos Brands, which is now handling RVCA, has recently signed a new office lease in Irvine and will soon be helmed by a well-known surf leader.
Former RVCA general manager Mark Tinkess, whose past retail experience includes roles at O’Neill, Roark and Irvine’s La Jolla Group is returning as president. Tinkess said in a Jan. 31 statement that he and Ethos’ Markar Agakanian “have built a strong RVCA team consisting exclusively of former RVCA — Liberated employees and past RVCA leaders such as Jonathan McCabe, VP of sales.”
Completing the transition of Volcom to its portfolio in January, The Levy Group has also onboarded employees previously under Liberated.
“We hired over 45 people to solely focus on the Volcom effort,” Levy President Louis Levy told the Business Journal.
Levy Chief Commercial Officer and Senior Partner Michael Fernandez recently told the Shop Eat Surf trade publication that this includes Liberated’s former vice president of sales and global business development Brent Lantz who will be Volcom’s new general manager.
The Levy Group plans to lease additional space next to its existing office in Costa Mesa on Baker Street, currently dedicated to Roxy.
“Volcom is an incredible action sports brand that caters to surf, snow and skate. It’s imperative to stay in OC to continue its tradition of authenticity and keep our very talented team together,” Levy said.
The Wind-Down Process
Authentic, which had a 19.9% stake in Liberated, is known for owning about 50 brands that are licensed to 1,700 partners. It generates about $32 billion in annual sales.
Liberated, founded in 2019 by Todd Hymel, managed Volcom. With Liberated winding down operations, Hymel’s status is unclear. Hymel could not be reached for comment.
Liberated is currently in the process of transitioning brands still under its control such as Quiksilver, Roxy and Honolua to new licensees. Liberated was also the sole owner of Captain Fin Co., a Costa Mesa-based builder of surfboard fins, clothing and surfing accessories that it acquired in 2022. Representatives for Liberated have declined to comment on the status of Captain Fin’s.
Shop Eat Surf also reported last week that Liberated has begun liquidating inventory at its U.S. retail stores, including Volcom, Quiksilver, Billabong, RVCA and Honolua locations, due to financial distress.
The Liberated corporate offices being shuttered are located at 1740 Monrovia Ave. and 555 Anton Blvd. in Costa Mesa.
Positions eliminated included e-commerce, digital, marketing, technology, human resources and designer roles, as well as the chief executive and chief operating officer.