Quiksilver files for Chapter 11 bankruptcy in US

NEW YORK (AP) — Quiksilver, a ubiquitous clothing brand at surfing hot spots from the U.S. to Australia, filed for Chapter 11 bankruptcy protection for its U.S. division.

The brand, founded in 1969 in Australia, enlisted a stable of huge names to represent its image over the years, including surfers Kelly Slater and Tom Carroll.

Yet after what turned out to be its golden decade in the 1990s, Quiksilver has faced rising competition, particularly in the U.S.

The company said today that its European and Asia-Pacific businesses are going strong and are not part of the bankruptcy filing.

"After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver," said CEO Pierre Agnes in a printed statement.

Quiksilver Inc. listed assets of more than $100 million and liabilities of more than $500 million in the filing.

Chapter 11 bankruptcy allows a company to continue operating while it executes a reorganization plan. Quiksilver asked the court to allow Oaktree Management to provide more than $175 million in financing for the company as part of the "debtor-in-possession" plan.

The company, based in Huntington Beach, Calif., plans to continue with an ongoing store-closing plan in the Americas.