The unravelling of Quik’s Rossignol acquisition has become more interesting. Again let’s revisit the scenario. Quik’s core business is surf apparel. Quik buys Rossi in hopes of driving up sales. Rossi has too much baggage. Quik is looking to dump Rossignol’s hard goods but keep the soft goods line in-house. Now if you are not attuned to how much was tied to the Rossi deal this little nugget has surfaced from Golf Business Week:
“In June, the Huntington Beach, Calif.-based company, whose core business is surfing apparel, reported its first quarterly loss in 15 years. The setback mostly was attributed to its struggling hardgoods division, including Cleveland, which led Quiksilver CEO Robert McKnight Jr. to open the door to sale overtures. During a June conference call, he said management is “looking at every possible alternative concerning the hardgoods” and “everything is on the table.”
Since then, Quiksilver and Cleveland executives have remained mum, at least publicly. But two sources familiar with Quiksilver say it has charged J.P. Morgan Chase to find a buyer. A spokesperson for the financial services firm declined comment.”
GBW goes on to lay out the scenario and if you are into golf you can read the full story here.