06/11/2013

Business news : Billabong Announces Details On Sale Of West 49

Sun 3. Nov. 2013.SYDNEY (Reuters) - Embattled surfwear company Billabong International Ltd announced it has entered into an agreement to sell its Canadian retail chain West 49 to fashion retailer YM Inc.

YM Inc, known for its stores including Stitches, Sirens, Urban Planet and Bluenotes, will purchase 92 West 49 retail stores across Canada for approximately C$9 million-C$11 million ($8.6-$10.5 million).
Both companies have also entered into a two-year supply agreement while Billabong will retain its six eponymous stores and two Element stores in Canada.

"The sale of West 49 is part of our broader strategy of simplifying our business and focusing on the core of what we do best, which is building strong global brands," Neil Fiske, CEO of Billabong said in a statement.

Billabong has been through a tumultuous 18 months, selling assets, restructuring its debt and changing its management in the wake of slumping sales. In September, it agreed to a refinancing proposal from U.S. hedge funds Oaktree Capital Management and Centerbridge Partners.

Shares in Billabong were down 0.8 percent at A$0.40 after the announcement, compared with the benchmark S&P/ASX 200 index which was up 0.2 percent.

(Reporting by Thuy Ong; Editing by Edwina Gibbs)

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