The company, headquartered in Costa Mesa, California, filed for bankruptcy earlier this week in Delaware. Citing ongoing economic challenges, Liberated Brands attributed the decision to persistently high interest rates, inflation, and shifting consumer preferences toward fast fashion and e-commerce over traditional branded apparel and brick-and-mortar retail.
In its Chapter 11 bankruptcy filing, Liberated Brands estimated its assets to be between $100 million and $500 million, with liabilities falling within the same range.
According to Fox Business,the company stated that its U.S. stores will remain open during the initial phase of the closure process but will ultimately shut down following the completion of liquidation sales. Additionally, the fate of its nine locations in Hawaii remains uncertain, as their status is still under negotiation, according to the company’s announcement.
A notice on the U.S. websites of Billabong, Quiksilver, and Volcom informs customers of the bankruptcy filing and states that gift cards will no longer be accepted for online or in-store purchases after February 16.
Although more than 100 retail locations will close, the brand licenses have been transferred to a new operator, ensuring that Volcom, Billabong, and Quiksilver products will remain available. As Fast Company reports, many of these brands are already sold through major retailers such as Dick’s Sporting Goods, PacSun, and Kohl’s.
“Our industry is more competitive than ever, and throughout this process, we’ve remained focused on the wellbeing of our partners, providing support to our licensee, Liberated Brands as they evaluate their opportunity to reorganize their business and regain profitability. At Authentic, our primary responsibility is to our beloved brands and to their loyal fans and customers,” the company’s statement reads per USA Today.
“To that end, we’ve been working closely with Liberated Brands to thoughtfully transition key licenses to trusted operators within our network. Liberated’s U.S. store fleet was overinflated, burdened with outdated and underperforming locations. As a result, physical U.S. based stores will likely be rationalized, allowing the brands to create more value and strengthen their presence across specialty retailers, department stores, and e-commerce—ensuring a more agile and resilient future.”
Liberated Brands’ efforts to revive the business were unsuccessful, and by December 2024, the company’s North American licensing rights for its wholesale operations under the Volcom, RVCA, and Billabong brands were revoked, Hymel stated according to USA Today.
