Quiksilver has announced that the company filed for Chapter 11 bankruptcy in the US. Oaktree Capital Management is their new investor to help with its restructuring. As announced the bankruptcy procedure will only apply to the American part of the company, Europe and Asia Pacific are not to be affected by the bankruptcy.

The procedure of Chapter 11, approved by 73% of senior debt holders, will facilitate financial and operational restructuring of the Quiksilver’s U.S. operations, allowing the Company to restore its long-term financial health. Quiksilver will no longer be listed on the New York Stock Exchange and Oaktree Capital Management will supply the company with the $175 million financing it needs to get through a restructuring. Quiksilver considers that this funding will be more than sufficient to ensure ongoing operations in the U.S..

Oaktree is a leader among global investment managers specializing in alternative investments, with over $100 billion in assets under management. The firm which emphasizes a value-oriented and risk controlled approach to investments has a proven track record of success assisting companies through the restructuring process and in the action sports industry.

Pierre Agnes, CEO of Quiksilver said: “With the protections afforded by the Bankruptcy Code and the financing provided by Oaktree, we will not only be able to satisfy our ongoing obligations to customers, vendors and employees, but we will also have the flexibility needed to complete the turnaround of our U.S. operations and re-emerge as a competitive force in the lifestyle brand marketplace. Our fresh capital structure will enable us to reinvigorate our brands and products. We are confident we will emerge a stronger business, better positioned to grow and prosper into the future.”

In connection with the filing, the Company intends to continue its existing store closing program to rationalize its store base in the Americas.