Billabong Cuts Brand Value to Zero

by on Tuesday 27th August, 2013   11903 Visits   Comments

Billabong share price rise and fall since the year 2000.

Billabong has reduced its brand value to zero, following an annual statement detailing trebled losses and a share price drop of over 60 percent.

The company started in 1973, with Gold Coast shaper, Gordon Merchant, sewing boardshorts on his kitchen table, and gradually grew into one of the corporate giants of the surf industry. However, following a failed campaign of international expansion, and poor sales throughout all of the major markets, the company became laden with debt.

A statement released today mentions a net loss (after tax) for the year of $859.5 million, sending its shares plummeting a further 16 percent. The brands Element, Palmers and Beachculture, which form part of the Billabong group, have also had their values stripped to zero. 

“They have had an absolutely ginormous writedown, and that’s the only way that you can describe it,” said IG Markets analyst Evan Lucas.

Central to the company’s fiscal woes is its failure to maintain sales in key markets such as Europe and the US. Furthermore, it has been suggested that the brand, which once exuded countercultural grit, has somewhat lost its edge within the youth market.

The Future

Despite the apparent devastation, Billabong’s chairman, Dr Ian Pollard, retains a degree of optimism for the future. 

“Financial stability is critical to rebuilding Billabong” said Pollard. “Liquidity has been secured and we are within weeks of finalising our long term funding arrangements. Our shareholders, our staff and our various business partners can be confident that we have a strong future following the most challenging period in the Company’s history.”

Measures taken to limit damage and revive the perishing company include the closure of 158 “under-performing” stores, the sale of the DaKine brand, and likely separation from a joint venture with Nixon.

Average rating of 0 from 0 votes

11903 Visits -

Feature Bottle Says, Confidence is Key at Bells

Bottle Says, Confidence is Key at Bells

With two events already down the “Dream Tour” is well underway for 2014.

Video Ferg's Quiver, Episode 5 of Growing

Ferg's Quiver, Episode 5 of Growing

Ferg talks about his eclectic quiver of surfboards before putting them through their paces in some of the best waves the North Atlantic has to offer

News Kepa Acero at Approaching Lines

Kepa Acero at Approaching Lines

Internationally renowned filmmaker Kepa Acero comes to Cornwall to host a very special event as part of the Approaching Lines Festival.

Video Dusty Payne in Mexico, Happy Not to be on Tour

Dusty Payne in Mexico, Happy Not to be on Tour

Sandy barrels beat the grind hands-down but the heartbeat of competition never stops pulsing.

Video This and Nothing Else: Peter Conroy

This and Nothing Else: Peter Conroy

A Dublin fire fighter and his obsession with Ireland’s biggest and deadliest wave.

Video Return of the East Coast Kegs

Return of the East Coast Kegs

Does your East Coast look like this?