Key points:

• Liberated Brands has filed for Chapter 11 bankruptcy, leading to the closure of over 124 locations of Quiksilver, Billabong, and Volcom.
• The company struggled with economic pressures, competition from fast fashion, and declining customer demand.
• Though stores are closing, the brands will continue under new operational partners primarily online.

In a significant move reflecting the challenges faced by traditional retail, Liberated Brands, which operates the popular surf and skate apparel chains Quiksilver, Billabong, and Volcom, has filed for Chapter 11 bankruptcy protection. This filing will lead to the closure of approximately 124 stores across the United States, as reported by various outlets including Newsweek and AP News.

According to the company's statement, the decision for closures comes in light of a combination of unfavorable economic factors including high inflation, changing consumer spending habits, and an increasingly competitive landscape dominated by fast fashion retailers. "We have faced a lethal combination of significantly lower revenues than anticipated," noted the company in court filings.

The closures will affect a broad range of states, including California, which houses many stores, as well as locations spanning Florida, Hawaii, and Virginia. This move signals an ongoing trend where retail chains are downsizing their brick-and-mortar operations due to the continued rise of e-commerce. "Consumers can cheaply, quickly, and easily order low-quality clothing from fast-fashion powerhouses," said Liberated's CEO Todd Hymel, which has pressured brands like Quiksilver to adapt by minimizing their physical presence in the market.

Despite the shuttering of physical locations, the brands themselves are poised for a different trajectory. Authentic Brands Group, which owns Quiksilver, Billabong, and Volcom, indicated that these brands will transition to new licensed operators, ensuring that they continue to produce and sell merchandise, primarily through e-commerce platforms. "We’ve been working closely with Liberated Brands to thoughtfully transition key licenses to trusted operators within our network," confirmed David Brooks, EVP of Authentic. This transition is aimed at enhancing the brand's long-term viability and presence in the market, away from the burdens of outdated physical storefronts.

As Liberated Brands winds down its North American operations and prepares for layoffs affecting nearly 1,400 employees, the large-scale closures align with a broader movement within the retail sector. Other prominent retailers, including major department stores, have also announced significant store closures recently, leading to forecasts of thousands of additional retail outlets shutting their doors in the years ahead. The evolving landscape continues to challenge traditional retail, signaling a fundamental shift in how apparel brands must operate and connect with consumers.

For further details on this major development in the retail fashion landscape, check out the complete articles from LA Times, Newsweek, and AP News.