Federal Court gives green light for Billabong to be saved by Boardriders
Australia’s Federal Court has cleared the acquisition of struggling surfer brand Billabong by Boardriders, the owner of Quiksilver.
The American firm could complete the takeover, a deal said to be worth around $208mn, as early as next week once Billabong has submitted the court verdict to the Australian Securities and Investments Commission.
The combination of Boardriders and Billabong will create the world's leading action sports company with sales to over 7,000 wholesale customers in more than 110 countries, owned e-commerce capabilities in 35 countries, and over 630 retail stores in 28 countries.
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Speaking in January, Dave Tanner, who is to become Chief Executive Officer of Boardriders, said: “The combination of these two leading action sports companies, which include a broad range of iconic brands with deep heritage in surf, snow and skate, is very exciting for all of us who share a passion for outdoor action sports.”
Billabong Chairman Ian Pollard also said at the time: “While Billabong has made significant operational progress in recent years, the board is also mindful of the fact that, in the absence of the Scheme, Billabong shareholders face ongoing risks and uncertainties associated with the business.”
Years of heavy losses have put Billabong on the brink of collapse. In the three years to 2015, the company recorded combined losses of $1.3bn.