Billabong share price falling of a cliff at the moment down 50% since reopening at 11am today. When it announced no takeover and its profits arent that flash..

Abandon ship by the looks of it, lots of shares being sold...


Troubled retailer Billabong is discussing possible debt deals and asset sales with two private equity firms after takeover talks ended.

Billabong has been exploring a possible takeover with two separate parties - one including private equity firm Sycamore Partners; the other including private equity firm Altamont Capital Partners.

Those change of control talks had now concluded, Billabong said this morning, as it issued another profit warning.

Shares in the company will resume trade at 11am, after being suspended from trade for most of May.

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Discussions were now being held with Sycamore and Altamont about potential refinancing and asset sales offered as an alternative to a takeover, it said.

The proceeds of those possible deals would be used by Billabong to repay in full its existing debts, the company said.

??The refinancing is intended to provide the company with a comprehensive solution and an appropriate capital structure, allowing it to continue its reform agenda,?? chairman Ian Pollard said in a statement. ??It?s our intention to conclude these discussions as soon as practically possible while aggressively reducing costs across all our global operations.??

Billabong has been undergoing a major restructure as it deals with tough economic conditions, particularly in Europe.

Those conditions remain weak, and the company today cut its forecast for earnings in the full financial year to June 30.

Tough Australian retail conditions have contributed to weaker than expected trade in Billabong?s Australasian business, it said.

Conditions in Europe also remain weak, and the start-up costs for an online business there have been higher than anticipated.

Billabong expects its full year earnings, before one-off financial items, to be between $67 million and $74 million, down from its previous guidance of $74 million to $81 million.


Read more: www.smh.com.au/business/billabong-wiped-out-as-suitors-flee-20130604-2nmyw.html

Jeepers.....maybe Gordon should cash in that real estate he has near that magnificent point break and take the company private. Someone will have a feast on Billabong one day soon at these mad prices.

i can't see the surf fashion industry riding the gravy train again.

lets be honest the prices for, well pretty ordinary gear was ridiculous.

i never really brought into it. most of my boardies are the best looking ones i can find at kmart.

or sale specials.

big bucks for a screen print t shirt of dubious quality- f off i say

^ bloody hippy

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62mac said..

^ bloody hippy

bloody yuppy

bloody hell

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thePup said..

bloody hell