Billabong shares fell more than 11.5% this morning after the company posted a full-year loss of $859.5 million.
Analysts had forecast a loss of about $560 million.
Based on Billabong’s current share price of $0.50, the company is now worth just under $240 million.
Billabong chairman Ian Pollard said the firm had been under “significant distraction of managing multiple bid and refinancing proposals”, referring to its lengthy negotiations with creditors Oaktree Capital Management, Centerbridge Partners and Altamont Capital.
“Financial stability is critical to rebuilding Billabong,” he said. “Liquidity has been secured and we are within weeks of finalising our long-term funding arrangements.”
Pollard said Billabong was undertaking a number of major reforms including simplifying business operations, reducing suppliers, closing 158 underperforming retail stores, offloading Canadian retail chain West 49, and backing out of Californian watch brand Nixon.
“We are nearing the end of a long process that has caused distraction, impacted on staff morale and has been very costly,” Pollard said.
“The company looks forward to refocusing, reinvigorating its brands and rebuilding the business on a solid, long-term financial footing.”
Via investing.com, here’s what happened:
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