Trouble at Billabong

Patrick Moran / June 04, 2013 03:23 PM

On April 8, we posted on the Who's Who in Business in Australia Facebook page that iconic Australian surfing company Billabong was in takeover talks with an American consortium, in an attempt to stem their losses and declining company value. Those talks collapsed today, along with an announcement of a 5% drop in sales and heavy losses on their Surfstitch business in Europe. In response, Billabong’s shares have gone into complete freefall, dropping over 40% of the value so far today. 

Billabong

Source: AP/The Australian

Pity any long-term Billabong shareholders. In early 2012, the Billabong board rejected a takeover bid of $3.50 a share, and as of this post their shares are now at $0.24. We hope that the only direction now can be up for their new leadership team, Chairman, Ian Pollard, and CEO, Launa Inman.

 

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