The Quik is dead! Long live the Bong!
When Quiksilver finally came out with its hands up late on Tuesday night (US time) after weeks of 11th hour attempts to negotiate some kind – any kind – of management buyout that might stave off bankruptcy, the tragic inevitability of it all did not diminish the tragic reality of the end of a 45-year reign for the greatest surf brand of them all.
The Quik is dead! Long live the Bong!
Of course the spin doctors from Graham Street, Huntington Beach, to Collins Street, Melbourne, jumped in immediately with assurances that this was merely a clever strategic move to “facilitate Quiksilver’s financial and operational restructuring, which is designed to restore the Company to long-term financial health” (Huntington), and that its Chapter 11 filing would have no impact outside of the US where “we will be running our business as usual - Australian, New Zealand and Asian customers will have normal access to the full range of our iconic brands” (Melbourne).
In a word, bullshit.
The company that has filed for Chapter 11 bankruptcy protection may have been a US subsidiary, but the financial crisis is the property of Quiksilver, Inc, a public company listed on the New York Stock Exchange for more than quarter of a century, and for a long time its blond-haired, blue-eyed darling. It happens to own Quiksilver worldwide, having “bought back the farm” during the Nineties and the Naughties. Filing Chapter 11 means that the Quik, Inc management team is effectively a “debtor in possession”, given license to continue its operations only while the company is restructured or sold as a going concern.
In a situation as serious as this, no area of operation, no colonial outpost is spared the knife, no matter how clinically correct the cuts may be. Already there have been huge lay-offs in Huntington and Torquay and more are on the way.
None of the above is meant to suggest that Quiksilver cannot rise from the grave. In fact Chapter 11 is specifically designed to allow companies, believed to be viable in the long term, to be resurrected, and some of the biggest brands in the world have been through the process and survived, like American Airlines, General Motors and Kodak. And Quiksilver has the advantage of a new financial arrangement with Oaktree Capital, the investment gurus with $100 billion on their accounts, who have eased Quik’s immediate debt pain and are effectively in control of the company.
Oaktree seems to have performed magic on Billabong since taking a 20 percent position, and the resignation of Oaktree principal Matthew Wilson from the Billabong board earlier this week, citing a conflict of interest, sparked speculation that a deal was imminent. While it is too early to tell how Oaktree plans to handle its controlling investments in two of the world’s leading surf brands, it is certainly not inconceivable that some or all of Quiksilver’s viable brands, DC Shoes, Quiksilver and Roxy, could one day form part of a Billabong super-brand portfolio. Wouldn’t that be a turn-up!
So what are the immediate consequences for Quiksilver globally, and specifically, in Australia? Think the Billabong playbook. Cut costs, fix the supply chain, act normal. For Quiksilver, the presumption of normalcy is critical, despite massive lay-offs of staff and the cessation of redundancy packages, once generous in the extreme. Continuity of business is all-important. In the short-term, I’d say that means Steph Gilmore and Dane Reynolds are safe. Two Quik Pros on the WSL tour? Hmm, not so sure. Pay cuts at boardroom level? Unlikely. Job-shedding down at ground level? Absolutely and ongoing.
Quiksilver’s current management was under the cone of silence this week, apart from predictable press releases, and understandably, but informed former execs I spoke with were united in one view. A brand as good as this doesn’t die, despite its tragic parenting over a couple of decades. The bloodbath is only just beginning, but there are many positive (albeit brutal for others) opportunities under Chapter 11, such as getting out of stupid shop leases, and crazy licensing deals (most of them concocted by Andy Mooney) such as Quiksilver homewares.
The company that Alan Green founded in a corner of the Rip Curl bakery on Boston Road is dead and buried, but with Oaktree guidance, the mountain and wave brand may have its best chance of survival in many years. //PHIL JARRATT
Comments
I would say a good move for the Bong. No need to let the brand die but consolidate. Better product range and designs. Maybe an opportunity to bring back a high quality range of products made in US or Aus not China.
Looking forward to read the next chapter
Clothing products made in Aus?
hahahahahahaha
Noted you have a dig at Mooney - Are we that stupid to think that guy came into anything other than a basket case? I suppose Mooney also made a massive error in not making certain Slater stay on the team. Might not he have been simply trying to run legally and create some form of viability? It's all Mooney fault
Their clothing catalogue never so looked so good as in a the last couple of years.
And the shopping experience through their webside is second to none. Efficient and quick.
They'll do alright once they trim the fat...
Got to agree, even though Jesus Christ was playing fullback for Nazareth the last time I bought surf branded clothing, the Quik boardies look way more functional than the Bong ones.
still have the 2 pairs for $30 hook-up now that Bylesy's is gone? or do you need to cop some $100 on-trend trunks before summer swings?
all my Bylesy 2 for 30's have been cremated. But I saw him on the side of the road the other day so all is not lost
1
I'm sure Phil and the boys had some good years back there but for a lot of us the whole Quikbilly thing went against the grain. They made the business into a cut throat winner take all game that most of us had no desire to play. Along the way they wiped out many small players who had something to contribute and played hardball with any board makers with sponsored surfers who had any thoughts of maybe doing some t-shirts. So hopefully they will never regain their former power. We all benefit from diversity and competition and whatever else they may have been about Quikbilly were never about those. It was all about domination, narcissism, greed and selling their souls to the highest bidder.
BB...many of the original blokes are still involved. Sure there is big bucks but let's give credit to these guys as they brought a cottage industry into mainstream - gave many surfers jobs and careers. There are still new brands coming on board but the game has changed and now Nike and like are into it. Maybe it's more surfers don't want to be mainstream - we are a bit out there. Some say we can't make gear here - don't see why not. RM Williams do - good quality. We all seem to agree, the brand is low quality and expensive. The opportunity door is open.
I see Freddy P just retired today,great example of where the company money went: quicksilver wasted mega bucks for minimun return on him, paid the kid a million strait up to be the next best thing and then what? A 16 yr old with everything, so no hunger no drive just a giant head so what,s the return= Lacklustre results, embroided freddy p jackets, outside Hawaii nada, famous now for his rock hop dummy spit but that wouldnt sold many boardies I reckon. Thats just the first name that springs to mind, how many others can you think of? Sponsorship of these guys( apart from say 10 surfers on the plant maybe) does it give back what it costs the business? time to get a real job lads.
Did he drop in on you or something? Sheeesh!
Couple times and faded dangerously at pipe one time but no where near as many as Jake Pato - another quicksilver stable mate of his , never bought a single quicksilver product in my life as results of surfing behind it,s "ambassadors" from grommethood till quite recently
Ok, you've got me started now. Personally, I've never forgiven them for paying off a bunch of Balo's to send everyone in at Ulu's just so they could shoot their "young guns" with no-one in the lineup. Good riddance to a company that stands for nothing but exploitation and money!
i wonder how many "unprofessional"surfers can add to this list? Prob nearly everyone who has surfed for long enough can relate a story of being dropped in on, their once secret spot exposed in a mag/video, having a epic session ruined by a photo shoot or contest or boatload/carload pros with photographers and safety in numbers enough to be cunts and then they expect us to buy their product! In what other world than surfing would that work? Act like dicks and then people hero worship you? Good riddance
I'm not sure keeping Slater could have saved Quik in itself! Obviously Rossignol was a disaster but they seemed to keep racking up new retail stores with expensive fit out costs which clearly don't contribute. Someone kept supplying the money to keep spending. Did I read on here that there's another new one opening in Torquay this weekend with cafe and barbershop on board? How much does that stuff cost and how many more tee shirts do you have to sell to cover break even point? As Phil said above, while its only America in bankruptcy, that will still have ramifications down under. Retail store closures?
The complete renovation of the Quik store in Torquay looks amazing but the local paper claim it's at a cost of $2m...
http://m.geelongadvertiser.com.au/news/torquay-quiksilver-store-to-get-2...
Gee if its in the Ady its got to be true right ; {}
Damn Bernie & ze Frogs & people blowing smoke up each others asses for 2 decades +.
A shakespearian surf tragedy. Debt is death, in the end, always.
"And if somewhere on the way,
We got a few good licks in,
No ones ever gonna know..."
For years I had been using west wetsuits , apart from a few little things they were the best fitting wetty best performing wetty for my money, i believed they were a value for money product that helped contribute to many a great sesh! I could never understand why West wet suits went under? Since then i have been round the block trying just about every wetsuit brand on the market ironically enough the best wetsuit i have every owned now is a quick wetty and value for money is unbeatable. I ordered online a received the wetty in under three days, a front zipp 3x2 steamer, toasty as for under $320.00 bucks! I couldn't give a fuck about freddy, dane or kelly... My only concern is that an iconic surf hardware manufacturer remains in business to benifit surfers not trendy labelled up punters who wouldn't know the difference between offshore and onshore.
Wonder what ripCurl think of all this... For my money i always purchased RipCurl wettie's, figuring they grew up in cold water so should be the best - and i believe they were. I have just purchased a 'Need Essentials' 3/4, fantastic and a great price. Maybe the big guys could take a leaf out of 'needs' marketing ??
I brought a Flashbomb 3/4 3 seasons ago and is still going strong. Great wettie and the best Rip curl one I have had for ever.
Needs owner is ex Quiksilver I think.....couldn't stand seeing surfers getting ripped off.
I believe he was out this weekend at a secret spot, seems like a nice bloke. Great product, super great service, knows his target audience and is true to his word. Why do the big brands loose this ??
I've always found brand name boardies to be a little too loose around my squat-toned upper legs.
I now get tailored footy shorts made so you can really see the moneymaker pop when I'm leaning into a bottom turn.
Can't help but think that the popularity of my decision has hurt the sales of boardies and may have contributed to the demise of Quik
GaryG... Who is your tailor ? After a couple of bottom turns may get the bank to myself !
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Crowd Fund it !!!!!!!!