Quiksilver is selling Hawk Designs Inc. for $19 million,
Cherokee Inc. is buying the skate apparel line, which was created by famous skater Tony Hawk and bought by Quiksilver in 2000. In 2005, Quiksilver licensed the Hawk boys line, which catered to ages 8 to 18, to Kohl’s.
The major surf company has been struggling for years. It lost $232.6 million in the most recent fiscal year, which ended Oct. 31. Its revenue of $1.8 billion was down 6 percent from a year earlier.
Quiksilver’s debt ballooned with its purchase of the Rossignol skiwear company in 2005. Total debt reached $1.04 billion in 2009, hobbling the company’s ability to react to the economic downturn.
Founder Bob McKnight later called that period “the most financially and emotionally painful chapters in Quiksilver’s history.” McKnight, who started out selling shorts to shops out of the back of his car, had built Quiksilver into an international brand.
Today, Quiksilver is still struggling to reduce its debt, which totaled $831.3 million as of October. Rossignol was sold in 2008. About a year ago, McKnight was replaced as CEO by Andy Mooney.
Shortly after Mooney took over, it was announced that Quiksilver was eliminating its women’s line. In December, Quiksilver completed the sale of its snowboard business Mervin Manufacturing and announced its intention to eliminate other non-core businesses, including its majority stake in Surfdome Shop Ltd., its Moskova brand, and its business under license with Maui and Sons.
All three of its major brands – Quiksilver, Roxy and DC – had lower sales in 2013.