Quiksilver Inc. hired restructuring adviser Peter J. Solomon Co. to help it find financing as the surf-wear chain struggles to turn itself around in a crowded teen-apparel business, according to a person with knowledge of the matter.
The retailer is exploring options that include negotiating with lenders to increase the amount it can borrow on its credit line, said the person, who asked not to be identified because the matter is private. It’s the second time in five years the retailer has enlisted the firm to help boost its access to cash.
Spokeswomen for Quiksilver and Peter J. Solomon declined to comment.
Quiksilver, which replaced its top executives in March, abandoned its earnings forecast for the year as business suffered amid heightened competition from independent boutiques and niche online retailers. The company ditched its forecast because an expected improvement in profit later this fiscal year is further away than anticipated, Chief Executive Officer Pierre Agnes said in a statement in June.
The Huntington Beach, California-based company has posted a net loss in eight of the past 10 quarters and its cash declined to $48 million in April from $177 million at the start of 2011, according to data compiled by Bloomberg.
The $225 million 10 percent of senior unsecured bonds maturing August 2020 last traded at 26 cents on the dollar on July 7 in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. They lost 45.5 cents since March.
Quiksilver shares have plunged 77 percent this year to 50 cents.