One of the biggest downfalls in the business world over the last few years has been the dramatic decline of the once powerful retail giant, Billabong.
Billabong has been performing extremely poorly worldwide due to the worldwide recession. It has reached a point where a buyout looks like the only way out for the company. There are currently reported to be two private equity firms looking at the company, both based in the US.
The company’s shares hit a record high of $14 back in 2007 but are now at a low of around 70 cents. The shares dropped a massive 20 percent however made a slight recovery today of 8 percent when news spread that the two private equity companies were still interested in the company.
The price offered by both companies was $1.10 a share subject to them running through the company’s books.
Billabong have some great performing assets, one of which is their online company purchase, SurfStitch. SurfStitch has been a consistently good performer and much of this is due to their promotional efforts such as offering consumers a SurfStitch promo code.