Surf Style Retail Management Inc. Risk Report

🛡️ Financial & Liquidity

The surf retail sector is facing significant challenges, marked by several bankruptcies and financial distress among notable brands. Iconic 90s surf brands are grappling with bankruptcy issues, leading to store closures and job losses. This trend signifies potential financial instability within the industry.

• Quiksilver, Billabong, and Volcom stores are closing in the US due to financial troubles, as announced 🗓 2025-02-11.
• Liberated Brands filed for chapter 11 bankruptcy 🗓 2025-02-03, affecting multiple locations and jobs.
• Authentic is pulling Billabong, Volcom, RVCA licenses from Liberated Brands amidst financial struggles 🗓 2024-12-10.

👥 Labor & Workforce

The surf retail industry's financial issues are translating into substantial workforce changes, including layoffs. Nearly 400 employees were affected through layoffs from a major surf industry brand, highlighting widespread job insecurity.

• Liberated Brands laid off nearly 400 employees and closed Costa Mesa offices 🗓 2025-01-10.
• Boardriders announced expected layoffs to conclude by 🗓 2023-10.
• Maui is losing 10 stores and 80 jobs following a bankruptcy filing by a company overseeing iconic surfing brands 🗓 2025-03-05.

🏗️ Operational & Business Continuity

Operational challenges are prevalent, especially with store closures and demolitions affecting business continuity. These changes reflect a shifting landscape in retail operations and consumer demand within the surfing industry.

• Quiksilver, Billabong, and Volcom's store closures in the US are part of a broader operational restructuring due to financial pressures 🗓 2025-02-11.
• Treasure Island’s Thunderbird Beach Resort’s demolition and rebuilding plans highlight a shift in strategic operations 🗓 2025-04-09.
• ZJ Boarding House, a popular Santa Monica surf shop, is closing four years post-reopening 🗓 2025-02-26.