Dive Summary:
- While no longer part of its daily operation, Billabong creator Gordon Merchant feels the pressure of declining market value; Gordon Merchant wound up selling stock at $1.45 per share after insisting at first that it would not sell for less than $4 per share.
- The struggling company has experienced a $276 million loss and is preparing to close 140 stores worldwide by June.
- Despite its lackluster financials in 2012 and a weakened retail climate, major investors are still showing interest in the brand.
From the article:
"...launched by Merchant as a handmade-boardshorts business in 1973 with his then wife, Rena, is still appealing to big investors. In February 2012 American private equity firm TPG (which owns the Neiman Marcus Group) attempted to buy the company for A$694 million, or A$3.30 a share. Merchant rejected the offer..."
