The iconic surf and skatewear industry faces a significant blow as multiple beloved brands from the 1990s prepare to close their doors forever.
According to Daily Mail, Liberated Brands, the company managing popular labels Billabong, Quiksilver, and Volcom, has filed for bankruptcy and will close all 120 stores across the United States and Canada.
The bankruptcy filing marks a dramatic turn for these once-dominant surf culture brands, which gained massive popularity during the 1980s and 1990s. Billabong, established in 1973 on Australia's Gold Coast, and Quiksilver, founded in 1969, revolutionized surfwear with innovative designs and athlete sponsorships, while California-based Volcom emerged in 1991 with its rebellious youth culture appeal.
The shift in consumer behavior toward cheaper alternatives has severely impacted these established brands. Shoppers have increasingly turned to fast-fashion retailers like Shein and Temu, abandoning the higher-priced surfwear labels.
Liberated Brands CEO Todd Hymel addressed this market shift in court documents. He explained how changing consumer preferences and economic conditions contributed to the company's downfall.
The average consumer has increasingly prioritized affordability and quick delivery over brand loyalty, as expressed by Hymel in court filings:
The average consumer has shifted their spending away from discretionary products such as those offered by Liberated. Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast fashion powerhouses and have such goods delivered within days.
The company's troubles began before Christmas when it failed to pay license fees to Authentic Brands Group, which owns the brands. This prompted Authentic to begin transferring key licenses to new companies in December.
JPMorgan Chase has provided $35 million in bankruptcy financing to help navigate the legal proceedings and facilitate store liquidations. The company is offering discounts of up to 60 percent to clear remaining inventory.
David Brooks from Authentic Brands Group explained why the retail locations won't be preserved, stating:
The stores that Liberated was shutting would not be saved because many were outdated and underperforming locations.
The surf wear brands' collapse is part of a broader trend affecting brick-and-mortar retail. By mid-December, U.S. retailers had already closed 7,300 stores, marking a nearly 60 percent increase from 2023.
Other major retailers have also announced significant closures. Macy's plans to shutter 150 locations over three years, with 65 stores closing by March. The Container Store filed for Chapter 11 protection in December, while Big Lots initiated going-out-of-business sales across all its U.S. locations.
This retail downturn has affected various market segments, with Esprit, another 1990s fashion icon, filing for Chapter 7 bankruptcy in November, leading to a complete shutdown of operations.
Liberated Brands' bankruptcy filing represents the end of an era for surf culture retail in North America. The closure of 120 stores across the United States and Canada signals a significant shift in consumer preferences toward fast fashion alternatives. The company's trajectory from its founding in 2019 to its current bankruptcy status illustrates the challenges facing traditional retail brands in an increasingly digital and price-sensitive market. While these iconic surf brands will continue through new licensing arrangements, their retail presence will be dramatically reduced as the industry adapts to changing consumer demands.
