"Fewer, bigger and better" is what surfwear retailer Billabong is aiming for over the next 18 months to three years when the company focuses on turning around the business, which has been drowning in debt for the last few years.
Debt troubled surfwear retailer Billabong has received approximately AUD$315.8 million in funding from its new private equity partners, Centrebridge Partners and Oaktree Capital Management.
Billabong has said refinancing and asset sale discussions with potential suitors Altamont Capital Partners and Sycamore Partners are "well in advance".
Billabong's only remaining bidder TPG has now withdrawn its offer to buy all of the company's shares.
In less than six weeks of receiving an offer from TPG International for $1.45 cash per share, surfwear retailer Billabong has received another proposal from an unnamed bidder for a takeover.
Billabong has announced its transformation strategy, which is expected to provide a clear pathway to unlocking the inherent value within the Billabong Group.
As Billabong continues to swim in deep waters after reporting an earnings slump in its half year results, rejecting TPG's offer to buy half of its assets and the decision to close stores, its US operation continues to remain strong.
The company has reported that total sales for the September quarter were up 24.7 per cent over the same period in the prior year.
The company reported $834.9 million in group sales revenue, which was up 15.8 per cent in Australian dollar terms compared to the prior corresponding year.
The company now anticipates first-half NPAT will be 8 to 13 per cent lower than the prior year in constant currency terms.
The company has acquired 38 retail stores from the General Pants Group and associated parties.
Expected to be completed on 1 November 2010, the acquisition comprises of 38 SDS and Jetty Surf retail banners, along with two licensed Billabong stores.