As one of the first brands to emerge, Quiksilver is a bastion of the corporate surf industry. They pioneered the velcro boardshorts and paved the way for surfers to enter the mainstream and make a livable wage. And after almost 50 years of dominance, the behemoth of a brand is beginning to falter.
Years of financial woes culminated on Tuesday with Quik filing for Chapter 11 bankruptcy. But as an international staple of surf fashion, the filing will only apply to the U.S. division. The company’s global investment lender, Oaktree Capital Management, will provide the company with the $175 million to keep operations afloat, reports the BBC.
In a statement, Quiksilver chief executive Pierre Agnes called this decision a, “difficult but necessary step to secure a bright future for Quiksilver.”
“With the protections afforded by the Bankruptcy Code and the financing provided by Oaktree,” Agnes continued, “we will not only be able to satisfy our ongoing obligations to customers, vendors and employees, but we will also have the flexibility needed to complete the turnaround of our U.S. operations and re-establish Quiksilver as the leader in the action sports industry.”