Billabong sells DaKine to pay debt
Pressured surfwear retailer Billabong has sold another of its brands and completed a $325 million bridge loan to pay off looming debts.
DaKine, a maker of backpacks, luggage and outerwear for snowboard, skiing, surfing and skating, was sold to US private equity firm Altamont Capital Partners for $70 million.
It is the second brand sold by Billabong in 15 months; it offloaded a 48.5 per cent stake in Nixon accessories in April 2012.
The DaKine sale was part of a rescue deal between Billabong and Altamont, which could result in Altamont holding a 40 per cent stake in the retailer.
Altamont's loan to Billabong, which attracts a 12 per cent annual interest rate, was drawn down on Friday, allowing Billabong to repay a $289 million debt.
Altamont has also nominated two new directors to the Billabong board, who will stand for election at the retailer's annual meeting in October.
As a condition of the deal with Altamont, Billabong chief executive Launa Inman stood down after 14 months with the company, and has been replaced by Scott Olivet, the former Oakley boss.