Billabong announced today that they’re worthless. After the Australian surfwear giant reported its worst financial year ever – a net loss of $772 million – they’ve written the value of the brand down to zero.
The company’s losses tripled, stores closed, debt agreements were broken, and firings plagued the 40-year-old brand for most of year.
Last week, Billabong began considering a proposal that would trump a refinancing deal they agreed to last month with Altamont. The new deal, proposed by Centerbridge Partners, amounts to $492.5 million in new debt and equity financing.
After their worst fiscal year ever, involving lower and lower takeover offers from different groups, Paul Naude stepped down as company director and America’s president of Billabong.
Billabong is still in the process of deciding between the two offers, saying that a decision will be reached as soon as possible.
With the future of the company looking bleak, the new deal will likely lay the groundwork for Billabong’s success or failure.