Court records reveal that Liberated Brands has declared Chapter 11 bankruptcy. Months after losing a portion of its Boardriders portfolio license arrangement, the filing was made.
The business stated that its assets and liabilities ranged from US $ 100 million to US $ 500 million. The reported creditors of Liberated have unsecured claims worth between US $ 566 million and US $ 3.2 billion.
Billabong, Roxy, Quiksilver, RVCA, Honolua, and Boardriders are all part of the portfolio, and Liberated managed the retail and e-commerce operations for them in the United States and Canada under a license deal with Authentic Brands Group. In the US and Canada, it served as Billabong, RVCA, and Honolua’s wholesale distributor and licensing partner.
However, Liberated CEO Todd Hymel stated in the court filings that Authentic terminated a portion of the licensing deal with Liberated in December 2024 due to its failure to comply with the licenses.
According to Hymel, Liberated’s income climbed from US $ 350 million in 2021 to US $ 422 million in 2022 before coming to an arrangement with Authentic. He ascribed the increase to a string of licence purchases and product demand during the pandemic.
Following that, the business encountered macroeconomic problems such as rising interest rates, inflation, supply chain hold-ups, and a drop in consumer demand, resulting in what Hymel referred to as “significant liquidity challenges in 2024.”
Liberated fired off 363 employees in January as a result of closing its headquarters in Costa Mesa, California, according to state WARN data. In addition, Hymel stated that 1,040 store employees were let go.
In the event that a partner is unable to meet its obligations, Authentic will transfer the licence agreement to other operators in its network, according to David Brooks, executive vice president of action and outdoor sports and lifestyle at Authentic.
