Debt troubled surfwear retailer Billabong has received US$300 million (approximately AUD$315.8 million) in funding from its new private equity partners, Centrebridge Partners and Oaktree Capital Management.
The cash injection will be used pay off the $315 million bridge loan facility the company owes to Altamont Consortium, together with interest and fees.
As part of receiving this much needed extra cash as a result of losing billions of dollars, the company has agreed to sell its Canadian retail chain West 49 to YM Inc for between CAD $9 million (approximately AUD$9.14 million) to CAD $11 million.
Along with retaining six Billabong stores and two Element stores in Canada, Billabong has also entered into an approximately CAD$34 million non-exclusive wholesale agreement with YM over the next two years.
“The sale of West 49 is part of our broader strategy of simplifying our business and focusing on the core of what we do best, which is building strong global brands,” said Billabong CEO Neil Fiske.
“The supply agreement we’ve entered into ensures our products will continue to have strong presence for consumers in that market.”
Along with these announcements, there have also been more shifts to its Board, including the retirement of four directors – Jesse Rogers, Keoni Schwartz, Tony Froggatt and Colette Paul and the retainment of another director, Sally Pitkin, who had initially announced she was going to leave the company.
The company also said it continues to work with GE capital to provide an asset-based multi-currency revolving credit facility of up to $US100 million. This has been reduced from up to $US140 million in part due to the sale of West 49.