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NEW YORK, United States — Quiksilver Inc. hired restructuring adviser Peter J. Solomon Co. to help it find financing as the surf-wear chain struggles to turn itself around in a crowded teen-apparel business, according to a person with knowledge of the matter.
The retailer is exploring options that include negotiating with lenders to increase the amount it can borrow on its credit line, said the person, who asked not to be identified because the matter is private. It’s the second time in five years the retailer has enlisted the firm to help boost its access to cash.
Spokeswomen for Quiksilver and Peter J. Solomon declined to comment.
Quiksilver, which replaced its top executives in March, abandoned its earnings forecast for the year as business suffered amid heightened competition from independent boutiques and niche online retailers. It has posted a net loss in eight of the past 10 quarters and its cash declined to $48 million in April from $177 million at the start of 2011, according to data compiled by Bloomberg.
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The company’s shares have plunged 77 percent this year to 50 cents.
By Jodi Xu Klein, with assistance from Lindsey Rupp. Editors: Shannon D. Harrington, Nick Turner.
