Billabong Losses Triple as 40-Year-Old Brand Seen Worthless

Billabong International Ltd. said its 40-year-old surf brand was worthless after the company’s losses tripled amid store closures, firings and a breach of debt terms. The stock fell the most in almost three weeks.

Founded by Gordon Merchant in 1973, Billabong helped sell Australian surfing culture worldwide and rose to a market value of A$3.84 billion ($3.45 billion) at its peak in 2007. Earnings have plummeted in the last two years as competitors including Abercrombie & Fitch Co. stole market share and Billabong took on debt to build a store network that it’s now shrinking.