Billabong brand value collapses, posts giant loss

SYDNEY — Billabong reported a $769 million annual loss Tuesday that reflects a collapse in the value of its once hot surf and street fashion brands.

The company said it marked down the value of its assets by AU$867 million ($776 million). That write-off resulted in a net loss of AU$859.5 million ($769 million) for the financial year ended June 30.

The company has staggered through a series of business shake-ups and failed buyout offers. It says it is in the final stages of debt refinancing negotiations that will allow the business to rebuild.

Billabong’s global sales for the year fell 13 percent to AU$1.34 billion reflecting store closures, Europe’s weak economy and the fading allure of its brands.

The Billabong and other brands owned by the retailer were valued at AU$90 million in the company’s financial statements released Tuesday, down from AU$614 million two years earlier.

The company’s shares closed down 5.3 percent in Sydney.

source: business.inquirer.net

Billabong gets competing $555.5M takeover bid

Australian surfwear maker Billabong International Ltd. says it has received a buyout offer of 526.8 million Australian dollars ($555.5 million) from a U.S. group including VF Corp. that matches a takeover offer it received earlier.

The company says the group, which also includes Altamont Capital Partners, is offering 1.10 Australian dollars per share ($1.16).

The bid is identical to an offer Billabong received from a group including board member Paul Naude, Sycamore Partners Management and Bank of America Merrill Lynch in December.

Billabong is giving both groups the right to conduct due diligence to get a better understanding of its value.

The company is evaluating the offers over an approximately six week period to see if it can secure a bid "at a price and on terms that the board would recommend."

source: lasvegassun.com