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2062 Inside Retail Weekly

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Quiksilver riding rough waters BY JARED DICKSON I N S I D E T H I S I S S U E : Flagging sales and unsustainable debt have forced surfwear retailer, Quiksilver, into Chap- ter 11 bankruptcy protection in the United States to allow the company to restructure its operations. The restructure will involve ownership and control of the business, which has been listed on the New York Stock Exchange since 2002, to pass to senior lenders, including Oaktree Capital Management. A private equity investment firm in the US, Oaktree Capital Management was a key player in the $586 million 2013 rescue of Billabong International, and currently retains a substantial shareholding in that company. Oaktree Capital Management will lead a debt for equity swap for the Quiksilver business, which could lead to a merger of the troubled company with Billabong International, which is pursuing a turnaround strategy after near financial collapse in 2012-2013. Quiksilver and Billabong International, along with Rip Curl, all started in Victoria and have expanded internationally. Billabong International, which is now head- quartered on the Gold Coast in Queensland, is publicly listed on the Australian Stock Exchange, while Quiksilver, which has its head office in Huntington Beach, California, is listed on the New York bourse. Rip Curl was forced to abandon plans for a public float or trade sale in 2013 when it was caught in the backwash of the financial woes of both Billabong International and Quiksilver. While Rip Curl has been the best performed and most profitable of the three Australian- born surfwear companies, the company is currently valued at around $310 million, compared with an expectation of $400 million in proceeds from a sale in 2013. Founded four years before Billabong International in 1969 in Torquay, near Geelong, Quiksilver was worth more than $A3.3 billion at its peak. But the company has continued on p.2. INSIDE RETAIL WEEKLY FROM THE SOURCE: Don Meij Domino's Pizza Enteprises boss chats to Justin Grey. p12 TALKING RESEARCH: Pricing mechanisms Pricing methodology and how to better strategise on price. p24 NEWS: 2015 World Retail Congress Inside Retail Weekly on the ground at 2015 WRC in Rome. p03 NEWS: Aldi keeps kicking goals Aldi's dominance continues as new stores confirmed. p04 OPINION: Digging deeper into 7-Eleven Troubles escalate for franchisor, 7-Eleven Stores. p08 FEATURE: Understanding Catalogues Upping the ante on catalouges to entice savvy consumers. p16 Inside news and views on the world of retail since 1972 Sept 16 2015 F O R M O R E R E T A I L N E W S , V I S I T W W W . I N S I D E R E T A I L . C O M . A U I S S U E 2 0 6 2

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