Quiksilver intends to sell its majority stake in action sports retailer Surfdome to SurfStitch. The deal, worth some $16 million, is set to work on condition that SurfStitch acquires the remaining outstanding shares in Surfdome as well. Quiksilver’s divestment is part of the group’s strategy to concentrate on its brands Quiksilver, DC and Roxy. In financial 2013-14, Surfdome had sales of around $60 million.
SurfStitch used to be the retail arm in Australia and Europe of Billabong, which held a 51 percent majority in SurfStitch, which was sold, last August, to a consortium led by the retailer’s founders. Very much like Quiksilver, Billabong intended to re-structure the group by focusing on its core brand of board sports products and putting its retail operations on the block, including Surf Stitch, Swell in the U.S. and West 49 in Canada.