Dick Smith issues warning as business behind Billabong, Quiksilver files for bankruptcy in US

The business behind legendary Australian surfwear brands Billabong and Quiksilver has applied for bankruptcy in the US, with more than 100 stores to close.

Australian magnate Dick Smith has issued a grim warning for the future of iconic Billabong and Quiksilver as the US firm selling the iconic surfwear files for bankruptcy.

Liberated Brands makes and sells Australian-founded surfwear brands Billabong, Quiksilver and Roxy, and will close 120 stores in the US and Canada after filing for bankruptcy this week.

US licensor Authentic Brands said the bankruptcy did not affect the brands’ future, and new partners would be found to make the products.

In Australia there are 18 Billabong stores and 13 Quiksilver stores - which also stock the sister brand Roxy.

The company making and selling Australian-founded surfwear brands Billabong, Quiksilver and Roxy has filed for bankruptcy.

In Australia there are 18 Billabong stores and 13 Quiksilver stores that also stock the sister brand Roxy.

Billabong and Quiksilver stores in America and Canada will close. Picture: Supplied

NewsWire has been told by one of the American interested parties that the insolvency focuses on the Liberated US business and should not affect Liberated South Pacific, which will continue to operate business as usual.

The US court documents point to a rapid expansion of store numbers - propelled by post-covid spending - and then a whiplash once inflation hit and disposable income dried up.

The Australian business and philanthropy mogul behind his namesake Dick Smith stores, Mr Smith, has told NewsWire that Billabong and Quiksilver’s US troubles remind him of Woolworths’ role in the demise of Dick Smith electronics.

“There’s pressure on the companies to expand forever, and that’s our system of capitalism,” Mr Smith said.

Dick Smith laments iconic Australian brands being sold off. Picture: NewsWire / Martin Ollman

This week’s major blow to the iconic Australian surfwear brands took Mr Smith by surprise.

“I would have thought they have been doing really well. They’re world-known brands and I’m amazed they’re in financial difficulty.

“Just about anything that’s any good has been sold off, which is a pity.”

Filed in Delaware, the bankruptcy documents point to a big surge in consumer spending immediately after the pandemic before inflation dramatically curbed disposable income.

“The average consumer has shifted their spending away from discretionary products such as those offered by Liberated,” Liberated Brands chief executive Todd Hymel says in the court filings, the Daily Mail reports.

“Consumers can cheaply, quickly and easily order low-quality clothing garments from fast-fashion powerhouses and have such goods delivered within days.”

NewsWire has sought the Delaware court documents.

Iconic Australian brands Quiksilver and Billabong are evidently unattractive prospects for North American consumers.

In 2023, Authentic announced Liberated would take over operations of the Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element and VonZipper stores in Australia, New Zealand, Thailand and Indonesia.

Under the deal, Liberated took over operations of the Boardriders brands in Australia. Boardriders has been approached for comment.

Billabong was founded on the Gold Coast in 1973.

Quiksilver’s origins are in Torquay, south of Geelong. Alan Green co-founded Quiksilver in Torquay in 1969. Mr Green died of cancer, aged 77, in January.

Originally published as Dick Smith issues warning as business behind Billabong, Quiksilver files for bankruptcy in US