SYDNEY Nov 4 Embattled surfwear company
Billabong International Ltd announced it has entered
into an agreement to sell its Canadian retail chain West 49 to
fashion retailer YM Inc.
YM Inc, known for its stores including Stitches, Sirens,
Urban Planet and Bluenotes, will purhase 92 West 49 retail
stores across Canada for approximately C$9 million-C$11 million
Both companies have also entered into a two-year supply
agreement while Billabong will retain its six eponymous stores
and two Element stores in Canada.
"The sale of West 49 is part of our broader strategy of
simplifying our business and focusing on the core of what we do
best, which is building strong global brands," Neil Fiske, CEO
of Billabong said in a statement.
Billabong has been through a tumultous 18 months, selling
assets, restructuring its debt and changing its management in
the wake of slumping sales. In September, it agreed to a
refinancing proposal from U.S. hedge funds Oaktree Capital
Management and Centerbridge Partners.
Shares in Billabong were down 0.8 percent at A$0.40 after
the announcement, compared with the benchmark S&P/ASX 200 index
which was up 0.2 percent.