Struggling surfwear business Quiksilver has had its reorganisation plan approved in court and expects to emerge from bankruptcy in early February.

The company, which owns the Quiksilver, Roxy, and DC Shoes brands, said the reorganisation will allow it to undergo financial and operational restructuring with Oaktree Capital becoming the majority owner of the company.

"This is an important milestone in the evolution of Quiksilver," said CEO Pierre Agnes. "We will emerge as a revitalised and stronger company with experienced leadership, rationalised operations, a clean balance sheet and a world-class partner in Oaktree, who brings additional strategic and operational expertise to our company.

"The reorganisation plan we have put in place provides us with the strong long-term financial foundation to fuel the success of our brands globally and positions us well to reassert our leadership position in the action sports industry."

The company, which filed for Chapter 11 bankruptcy in September last year after continuing to report losses and falling sales, yesterday (28 January) revealed its full-year figures.

It booked a net loss for the year of AUD314m, compared to a loss of AUD327m a year earlier.  Net revenues on a constant currency basis dropped 4% to AUD1.34bn, primarily due to a fall in Roxy and DC brand apparel sales in the Americas wholesale channel of $14m and $6m, respectively.

Sales in Quiksilver's EMEA segment was down 18% to AUD255m on a reported basis, while in the APAC region, sales fell 6% to AUD142m. 

For the Quiksilver brand, revenues were down 15% to AUD536m, while Roxy brand net revenues fell 16% to AUD400m, and DC brand revenues dropped 14% to AUD367m.

The company expects to emerge from bankruptcy – which related to its US operations only – on or around the week of 8 February.