27 August 2013
The value of the Billabong brand has been wiped out after the surfwear group posted a calamitous annual loss of nearly A$860 million (£499 million) in the wake of hefty writedowns.
Billabong rode the wave of booming surfwear sales globally and its value hit a peak in 2007 but the Australian company has suffered torrid trading in recent years, forcing it to slash store numbers and headcount.
It said the value of its 13 brands, including Element, Von Zipper, Palmers Surf, Nixon and Xcel, had tumbled to A$90 million in the year to June 30. Along with dire trading, this fall in value and other exceptional charges dragged Billabong into the red. The retailer’s 113 stores in Europe generated revenue of A$232 million last year.
