Early last year, Quiksilver unveiled a multi-year plan to try to return to profit

Early last year, Quiksilver unveiled a multi-year plan to try to return to profit

US surfwear brand Quiksilver has sold its licensed apparel subsidiary, Hawk Designs, to Cherokee as part of its continuing efforts to divest non-core assets.

Quiksilver has sold all the assets of Hawk to a wholly-owned subsidiary of global brand management business Cherokee for US$19m, it said today (13 January).

The company intends to use the net proceeds of the transaction to reduce amounts drawn on its credit facilities, as well as invest in its emerging markets, it said.

Early last year, Quiksilver unveiled a multi-year plan to try and return to profit by focusing on its three core brands - Quiksilver, Roxy and DC - globalising key functions and reducing costs.

In December, it completed the sale of Mervin Manufacturing and announced its intention to pursue the divestiture and exit of other non-core businesses, including Hawk Designs, its majority stake in Surfdome Shop, Ltd., its Moskova brand, and its business under license with Maui and Sons.

Last month, the firm swung to a fourth-quarter loss and booked a drop in revenues.