Blog: Wipe-out for surfwear business Quiksilver
Leonie Barrie | 14 September 2015
Struggling surfwear business Quiksilver last week filed for Chapter 11 bankruptcy for its US subsidiaries – with a court quickly approving a $175m financing package and plans to close 27 US stores. The group stressed that its European and Asia-Pacific operations “remain strong” and are not part of the filing.
The debt-for-equity swap with Oaktree Capital Management will provide funding for Quiksilver’s restructuring, and ultimately give the investment firm control of the Huntington Beach-based company.
UK fashion retailer Next Plc warned it expects to increase prices by 6% between 2016 and 2020 to cover the government's new National Living Wage and general wage inflation.
And the falling value of the Chinese yuan is being seen as another lever for US brands and retailers to drive down product costs, with one analyst describing it as a “tailwind for those sourcing apparel from China.”
Companies seen as having an “above-average sourcing exposure” to the country include children's players, those with more intricate workmanship that lends to Chinese skilled labour, and select active/outdoor players.
Meanwhile, Greenpeace is ramping up pressure on outdoor brands and retailers to eliminate all PFCs from their products and supply chains after the chemicals were discovered in remote regions around the world.
And Swedish apparel giant H&M is teaming up with animal welfare organisation Humane Society International to improve animal welfare in its supply chain as well as the wider fashion industry.
Nicaragua is seeking $160m to build a synthetic textiles manufacturing base to help double exports to $2bn in five years and offset TPL losses, government officials have told just-style.
But trade union laws and wage negotiations are rocking garment buyers' confidence in sourcing from Cambodia, one of the country's trade groups revealed.
Separately, work has begun to build a training institute for Cambodian garment workers. It will train local workers to fill middle management positions in factories across the country, as well as offering specialised design and pattern making courses.
And the Joe’s jeans brand is being sold to Sequential Brands Group and Hong Kong based Global Brands Group in an $80m deal that will see it join the latter's extensive portfolio of fashion and lifestyle labels.
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