Chapter 11 Filing Follows Loss of Boardriders Portfolio Agreement
- Liberated Brands files for Chapter 11 bankruptcy
- Lost part of licensing agreement with Authentic Brands Group for Boardriders portfolio
- Assets and liabilities between $100 million and $500 million
- Unsecured creditors’ claims range from $566 million to $3.2 billion
- Handled retail and e-commerce operations for Billabong, Roxy, Quiksilver, RVCA, Honolua, and Boardriders
- Revenue increased from $350 million in 2021 to $422 million in 2022
- Faced macroeconomic issues like interest rate hikes, inflation, supply chain delays, and reduced customer demand
- Laid off 1,403 employees in January
- Authentic Brands Group providing support to help Liberated reorganize and regain profitability
Liberated Brands has filed for Chapter 11 bankruptcy protection after losing part of its licensing agreement with Authentic Brands Group (ABG) for the Boardriders portfolio. The company’s assets and liabilities range between $100 million and $500 million, while unsecured creditors hold claims from $566 million to $3.2 billion. Liberated handled retail and e-commerce operations in the U.S. and Canada for brands like Billabong, Roxy, Quiksilver, RVCA, and Honolua through a licensing agreement with ABG. However, due to default under the licenses, Authentic ended part of the agreement in December 2024. Liberated’s revenue increased from $350 million in 2021 to $422 million in 2022 but faced macroeconomic challenges such as interest rate hikes, inflation, supply chain delays, and reduced customer demand. In January, the company laid off 1,403 employees. Authentic Brands Group is supporting Liberated in reorganizing its business to regain profitability.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Liberated Brands filing for Chapter 11 bankruptcy protection, the reasons behind it, and the impact on its operations. It also includes statements from relevant parties such as Authentic Brands Group’s executive vice president David Brooks and CEO Todd Hymel of Liberated. The article is not sensationalist or opinion-based, and while it does include some details about revenue and layoffs, they are relevant to the main topic.
Noise Level: 3
Noise Justification: The article provides relevant information about Liberated Brands filing for Chapter 11 bankruptcy and the reasons behind it, including macroeconomic issues and a loss of part of its licensing agreement with Authentic Brands Group. It also mentions the impact on employees and potential future changes in store locations. However, it could benefit from more analysis or context about the broader implications of this event for the industry or similar companies.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Liberated Brands filing for Chapter 11 bankruptcy protection and its impact on the licensing agreement with Authentic Brands Group, which affects companies such as Billabong, Roxy, Quiksilver, RVCA, and Honolua. The financial issues faced by Liberated are due to macroeconomic factors like rising interest rates, inflation, and supply chain delays, which can have an impact on the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article and it doesn’t meet the criteria for an extreme event happening in the last 48 hours.
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