The operator of Quiksilver, Billabong, and Volcom stores in the U.S. has filed for bankruptcy, leading to the closure of over 100 stores that sell apparel for skaters, surfers, and snowboarders. Liberated Brands, the company behind the popular brands, cited a volatile global economy, rising cost of living, and inflationary pressures as reasons for the bankruptcy filing. The CEO of Liberated Brands mentioned a rapid rise in interest rates, inflation, supply chain delays, declining customer demand, and shifting consumer preferences as contributing factors to the company’s financial struggles. Despite a boom in business during the Covid-19 pandemic, the end of the pandemic, along with increased interest rates and inflation, led to a weakening of customer demand and a decline in profits. The shift towards online shopping also impacted the profitability of the brick-and-mortar stores. However, fans of the brands can rest assured as parent company Authentic Brands Group plans to transition to another operator to ensure the future of the iconic brands.
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