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Three iconic surf, skateboarding, and swimwear retailers—Billabong, Quiksilver, and Volcom—will shutter their U.S. stores following the Chapter 11 bankruptcy filing of their parent company, Liberated Brands LLC. The Costa Mesa, California-based operator announced the decision after filing for bankruptcy in the U.S. District of Delaware on Sunday.

Liberated Brands, which manages 124 retail locations across the country, also operates brands such as Spyder, RVCA, Roxy, and Honolua. While it remains uncertain whether stores will close by February 16, a declaration supporting the bankruptcy revealed that the company had only $3.3 million in cash as of Monday, an amount sufficient to sustain operations for just one week.

Store Closures and Customer Impact

Customers visiting the U.S. websites of Billabong, Quiksilver, and Volcom are now met with a pop-up notification regarding the bankruptcy filing. The notice states that after February 16, gift cards will no longer be accepted for purchases online or in-store.

Financial Struggles and Economic Pressures

In a declaration supporting the bankruptcy filing, Todd Hymel, CEO of Liberated Brands, cited various economic challenges as the driving force behind the company’s struggles.

"Macroeconomic issues, including a rapid and dramatic rise in interest rates, persistent inflation, supply chain delays, a decline in customer demand well below the historical trendline, shifting consumer preferences, and substantial fixed costs placed significant pressure on Liberated’s revenue and cost structure," Hymel stated.

Liberated Brands also released a statement emphasizing the difficulties the company faced in an increasingly volatile retail landscape.

"The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll," the statement read.

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Future of the Brands

Despite the closures, Liberated Brands suggested that its seven brands may not be gone permanently. The company announced that it is "transitioning its brand licenses to new license holders as part of a management transition to ensure continuity for the brands and their success moving forward."

Additionally, the company expressed optimism regarding the future of its employees.

“Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future," the statement continued.

Until Liberated Brands finalizes the closure of its more than 100 U.S. stores, locations will "remain open and continue serving customers."

For more details, the official bankruptcy filing can be accessed here.