Iconic 90s surf brands closing 120 stores as they are wiped out by bankruptcy

The company behind popular surf, ski and skate labels Billabong, Quiksilver and Volcom has filed for bankruptcy.

Liberated Brands will shut all its 120 US and Canadian stores, after clearing stock with up to 60 percent off sales.

Bosses said shoppers had switched away from the labels to cheaper, fast fashion from the likes of Shiein and Temu. 

Billabong, founded in 1973 on Australia’s Gold Coast, gained a loyal following with its durable boardshorts, while Quiksilver, launched in 1969 also Down Under, revolutionized surfwear with Velcro-fastened boardshorts and high-profile athlete sponsorships. 

Both brands peaked in the 1980s and 1990s but struggled financially, leading to a 2018 merger.  

California-based Volcom, founded in 1991, became a staple in surf, skate, and snow culture with its rebellious ‘Youth Against Establishment’ ethos. 

The three brands – along with Roxy, RVCA, Spyder and Captain Fin – all ended up being owned by Authentic Brands Group, but were managed by Liberated Brands under a licensing deal. 

Problems arose first before Christmas when licence fees were not paid by Libreated.  Then on Sunday Liberated Brands submitted a Chapter 11 filing in Delaware.

The downfall of Liberated caps a swift rise and dramatic collapse for the company, which was founded in 2019 after Volcom’s management sold the brand to Authentic. 

Initially, Liberated thrived — revenue skyrocketed from $350 million in 2021 to $422 million in 2022, fueled by pandemic-driven outdoor activity and the expansion of its brand portfolio. 

After Covid, it went from running 67 stores to 140 as it took on the retail and websites for Billabong and Quicksilver.  

But once the Covid-19 spending boom faded and interest rates soared, consumer demand plummeted, CEO Todd Hymel admitted in court filings.

‘The average consumer has shifted their spending away from discretionary products such as those offered by Liberated,’  Hymel said.

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

JPMorgan Chase has stepped in to provide $35 million in bankruptcy financing, allowing the company to navigate the legal proceedings and begin the process of liquidating its stores 

In November, Esprit – another retailer that was popular in the 1990s – filed for bankruptcy. 

Once hailed as the epitome of California cool, it was beloved by young Americans for its bright colored clothes and cutting-edge commercials, including one featuring a teenage Gwyneth Paltrow in 1991.

It is in the process of shutting down entirely after failing for Chapter 7, a more extreme bankruptcy that sees all stock sold off and all stores shut. 

Across the board, stores are being closed as the ongoing ‘retail apocalypse’ forces brick-and-mortar locations to grapple with rising theft and shrinking profit margins. 

Up until mid-December, US retailers had shut 7,300 stores – up nearly 60 percent from 2023.

The most recent big retail bankruptcy was Container Store, which filed for Chapter 11 protection on December 22. 

Earlier that month, Big Lots said it was beginning ‘going out of business’ sales at all its stores across the US, after filing for bankruptcy in September.

BuyBuy Baby announced in November that it would be shuttering its ten remaining stores by the end of the year.  

In addition, Macy’s is closing 150 shops over the next three years – including the shuttering of 65 by March.