Billabong International to close 150 locations, cut 400 jobs
Surfwear retailer Billabong International is planning to cut 400 jobs worldwide and close dozens of underperforming stores. The firm also received a takeover offer from TPG Capital.
The company is likely to shut down 100 to 150 locations, which includes 302 stores in Australia and New Zealand and 250 in the Americas.
The Australia-based retailer's cost-cutting drive and a decision to sell half of its Nixon brand was announced as the firm reported a 71% decrease in six-month earnings to A$16m ($17.3m).
Billabong has entered into an agreement with Trilantic Capital Partners to establish a joint-venture (JV) for its watches and accessories brand, under which the firm plans to retain 48.5% of Nixon. The partial sale of the brand represents an enterprise value of about $464m.
In the past 10 years, the retailer has made at least 15 acquisitions, adding brands such as swimwear label Tigerlily and retail locations.
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