Iconic surfwear company Quiksilver filed for bankruptcy for its U.S. operations after struggling for years in a changing retail landscape.
The firm, based outside Los Angeles, announced late Tuesday that it is seeking Chapter 11 protection, and on Wednesday delayed the filing of its third-quarter financial results.
Action-sports-oriented Quiksilver has struggled as consumers have shifted to competitors, and it has had a difficult time appealing to consumers who don’t surf, skateboard or snowboard.
So far this year, the company’s stock has tumbled nearly 80 percent. In July, the firm was warned it was in danger of being delisted.
To fund continuing operations, the bankruptcy plan calls for $175 million in financing from affiliates of Oaktree Capital Management and Bank of America.
Upon exit of bankruptcy, Oaktree would own a majority of the company.
Chief Executive Pierre Agnes said the bankruptcy plan is a “difficult but necessary step” and will help complete a turnaround of the company’s U.S. business.
Quiksilver’s Asia and European units are not part of the filing.