Founding and the ABG Partnership.
Liberated Brands was founded in 2019 by former Volcom executives to manage Authentic Brands Group's collection of action sports lifestyle brands. The company was created to operate brands that ABG had acquired, beginning with Volcom after the French luxury conglomerate Kering sold it to ABG in April 2019. The founding team had prior experience with Volcom and continued operating it under ABG's ownership.
Under the licensing model, ABG retained ownership of the brand intellectual property while Liberated Brands operated retail stores, e-commerce platforms, and wholesale distribution. This structure allowed ABG to collect royalties without owning retail operations. ABG's "asset-light" approach—acquiring intellectual property while leaving operational responsibilities to licensees—achieves nearly 80% EBITDA margins across its portfolio of more than 50 brands generating over $29 billion in global annual retail sales.
Beyond Volcom, the company held licenses for Spyder (the ski apparel brand and longtime official supplier to the U.S. Ski Team), and following ABG's 2023 acquisition of Boardriders, took over North American retail and wholesale operations for Billabong, Quiksilver, RVCA, and Roxy. The expanded portfolio included additional retail banners: Honolua Surf, Beachworks, Becker Surfboards, ZJ Boarding House, and the Boardriders retail chain.
Volcom: From Founders' Vision to Corporate Ownership.
Volcom was founded in 1991 by Richard "Wooly" Woolcott and Tucker "T-Dawg" Hall, based on three passions they shared: snowboarding, skating, and surfing. They borrowed $5,000 from Richard's father and grossed $2,600 in their first year.
In 2005, Volcom went public on NASDAQ, raising $89 million at $19 per share. Six years later, on May 2, 2011, French luxury conglomerate PPR (which later became Kering) launched a takeover offer for $608 million, adding Volcom to a portfolio that included Gucci, Bottega Veneta, and Puma.
In April 2019, Kering sold Volcom to Authentic Brands Group. The former Volcom executives who founded Liberated Brands were brought in to operate the brand as licensees.
Post-COVID Expansion.
When the COVID-19 pandemic initially boosted outdoor and action sports retail—as consumers invested in recreation and moved away from urban centers—Liberated Brands expanded. The company grew from operating 67 stores to approximately 140, nearly tripling its workforce in the process.
The growth accelerated after ABG's September 2023 acquisition of Boardriders for $1.25 billion. That deal brought Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element, VonZipper, and the Boardriders retail platform under ABG's umbrella, with combined brands generating $2.9 billion annually in global retail sales. Liberated Brands became the primary North American retail operator for this expanded action sports portfolio, taking over operations from the prior Boardriders structure.
In July 2021, Liberated had also secured the license for Spyder. Spyder, a Colorado-based manufacturer of luxury ski apparel founded in 1978, had been the official supplier to the U.S. Ski Team since 1989.
Operating Challenges.
Liberated Brands expanded from 67 stores to approximately 140 and nearly tripled its workforce during the post-COVID retail boom. Industry observers noted that the closure of 120 stores signals a shift in consumer preferences toward fast fashion alternatives. The company fell behind on required royalty payments by late 2024.
ABG License Termination.
The license termination in December 2024 followed missed royalty payments. ABG decided to pull all licenses from Liberated Brands globally after the company failed to make royalty payments. The termination covered the North America license for wholesale businesses of Volcom, RVCA, and Billabong.
Without the right to use the brand names, Liberated Brands could not operate its retail and wholesale businesses. The stores, inventory, and infrastructure the company had built lost value without the intellectual property they were designed to sell. Once Liberated lost the right to sell branded products, the remaining tasks were liquidation of inventory and real estate.
Importantly, the brands themselves remained owned by ABG and moved to new wholesale licensees in North America. The bankruptcy was of the operator, not the brand owner. Volcom, Billabong, Quiksilver, and RVCA would continue to exist with new partners to manage retail and wholesale distribution.
ABG's "asset-light" model achieves nearly 80% EBITDA margins without owning stores or employing retail workers. The company partners with operators to license and merchandise brands, collecting royalties while operators run retail and wholesale operations.
Petition and Debtor Entities.
On February 3, 2025, Liberated Brands LLC and eight affiliated debtors filed voluntary petitions for relief under chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The cases were assigned to the Honorable J. Kate Stickles, who assumed the Delaware bankruptcy bench in 2021 after three decades of practice in Wilmington, including as a recognized bankruptcy practitioner at Cole Schotz P.C.
The jointly administered cases included multiple affiliated entities:
| Debtor Entity | Case Number |
|---|
| Liberated Brands LLC | 25-10168 (Lead) |
| Liberated Brands USA LLC | 25-10169 |
| Liberated-Spyder | 25-10172 |
| Boardriders Retail, LLC | 25-10173 |
| Volcom Retail Outlets, LLC | — |
| Liberated AX LLC | — |
The filing came approximately two months after ABG's December 2024 license termination. By the time of petition, the stores were closing and the company was seeking court supervision of an orderly wind-down.
Todd Hymel, the company's Chief Executive Officer, provided the First Day Declaration supporting the bankruptcy filing. The declaration outlined the circumstances leading to the filing, the company's financial position, and the relief sought to facilitate the liquidation process.
DIP Financing.
JPMorgan Chase Bank, N.A., the world's fifth-largest bank by total assets, provided postpetition financing to fund the liquidation process. JPMorgan had been the prepetition secured lender and rolled its position into a DIP facility to finance the wind-down. Morgan Lewis & Bockius LLP served as DIP lender counsel.
Gordon Brothers Execution.
On February 7, 2025—four days after filing—Gordon Brothers began closing sales at all 122 store locations. The Delaware Bankruptcy Court had approved the Sale Motion to close 124 stores in North America on February 4, the day after filing.
Gordon Brothers, founded in 1903, handled both inventory liquidation and real estate advisory services.
The brands covered by the closing sales spanned the action sports spectrum:
- Volcom
- Billabong
- Quiksilver
- Roxy
- Honolua Surf
- RVCA
- Beachworks
- Becker Surfboards
- ZJ Boarding House
- Spyder
- Boardriders
Gordon Brothers implemented a tiered discount structure. Full-price locations offered 20% to 40% off, while outlet locations offered 30% to 50% off all items.
Employee Impact.
The liquidation eliminated approximately 1,390 jobs. Corporate offices closed, laying off approximately 350 corporate employees. Roughly 1,040 retail staffers lost their positions as stores shuttered across the country.
The closures included Orange County, California. Volcom was founded in Costa Mesa; Quiksilver had Southern California roots; Billabong, though Australian in origin, maintained a California presence.
Asset Sale Results.
The liquidation process generated approximately $65 million from the sale of assets—primarily inventory and lease assignments. The proceeds did not cover the amount owed to secured creditor JPMorgan.
Litigation with Q4D, the new licensee for the Spyder brand, proved more costly than anticipated, further reducing available recoveries.
Extensive Rejection Activity.
The case featured at least nine rejection notices as the debtors unwound lease obligations across their store portfolio.
| Document Type | Docket |
|---|
| Rejection Procedures Order | Dkt. 209 |
| Sixth Rejection Notice | Dkt. 497 |
| Seventh Rejection Order | Dkt. 501 |
| Eighth Rejection (CNO) | Dkt. 539 |
| Ninth Rejection (CNO) | Dkt. 540 |
| Additional Orders | Dkts. 523, 545, 546 |
The rejection procedures allowed the debtors to terminate lease obligations while giving landlords notice and the opportunity to object.
Leasehold Sale Order.
The Leasehold Sale Order entered on May 19, 2025 authorized the assumption, assignment, and sale of the debtors' leasehold interests. Real estate advisory work by Gordon Brothers supported this process, identifying potential assignees and negotiating assignment transactions.
Official Committee of Unsecured Creditors.
An Official Committee of Unsecured Creditors was appointed early in the case and participated in oversight of the liquidation process. The UCC retained restructuring professionals to represent unsecured creditor interests.
Kelley Drye, ranked among the top creditor-side bankruptcy firms in the country, brought experience from major retail cases including American Signature, 23andMe, and Del Monte Foods. FTI Consulting provided financial advisory services including analysis of asset values and liquidation projections.
Contested Dismissal.
On April 28, 2025, the debtors filed a Motion to Dismiss the chapter 11 cases following completion of the sale process. With assets liquidated, stores closed, and no reorganization path available, the debtors sought to close the cases and wind up remaining administrative matters.
However, dismissal has been contested by multiple parties:
- JobsRUs.com (formerly CorTech LLC) filed a Limited Objection on May 20, 2025, raising concerns about resolution of its claims
- Sierra Brown filed a letter opposing dismissal on December 19, 2025, through counsel Patrick Gallagher
The objections reflect unresolved disputes about claim treatment, administrative matters, or other issues that certain creditors believe require judicial resolution before case closure. As of December 2025, the case remains formally pending with monthly operating reports still being filed and dismissal litigation ongoing.
Industry Context
The Long Decline of Surf Retail.
The Liberated Brands bankruptcy follows over a decade of decline for surf and lifestyle retail brands. Since approximately 2010, Quiksilver and Billabong saw sales begin to decline. Both companies began losing money.
Quiksilver filed chapter 11 in September 2015, emerging from bankruptcy in 2016 under the ownership of Oaktree Capital. The company changed its name to Boardriders in 2017. In 2018, Oaktree (through Boardriders) acquired Billabong and RVCA for approximately $250 million, consolidating the major surf brands under single ownership.
When ABG acquired Boardriders for $1.25 billion in September 2023, it brought the consolidated action sports portfolio under its licensing umbrella. The acquisition included Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element, VonZipper, and Honolua, plus the Surf Dive 'n Ski retailer in Australia with over 80 locations. Combined, these brands generated $2.9 billion annually in global retail sales and had distribution through more than 500 owned retail stores and 7,000 wholesale accounts.
Broader Retail Trends.
By mid-December 2024, U.S. retailers had closed 7,300 stores, marking a nearly 60% increase from 2023. Liberated Brands closed 122 stores.
The sporting goods industry more broadly has experienced growth deceleration. Global growth slowed from 8% prepandemic to 7% between 2021 and 2024, with projections of 6% annual growth between 2024 and 2029. Challenger brands—including Lululemon, On, Arc'teryx, and Hoka—grew faster than established brands from 2019 to 2024, while large incumbents like Nike and Adidas saw market share fall from 27% in 2019 to 24% in 2024.
North American retail sales of sports-related apparel and footwear are projected to reach $173 billion in 2025. The global sports apparel market was valued at $211.57 billion in 2024, projected to grow to $298.06 billion by 2032 at a 4.41% CAGR.
Only 44% of industry executives surveyed felt optimistic about 2025.
Debtors' Professionals.
The debtor engaged restructuring professionals to manage the liquidation process:
| Professional | Role |
|---|
| Kirkland & Ellis LLP | Lead Counsel |
| Klehr Harrison Harvey Branzburg LLP | Delaware Co-Counsel |
| AlixPartners, LLP | Financial Advisor |
| Gordon Brothers Realty Services LLC | Real Estate Advisor |
| Stretto, Inc. | Claims Agent |
Kirkland & Ellis, ranked by Chambers for its bankruptcy and restructuring practice, brought experience from major retail bankruptcies including Bed Bath & Beyond, Toys "R" Us, Barneys, and JOANN. The firm's restructuring group draws on attorneys across corporate, litigation, employment, securities, tax, environmental, and real estate disciplines. AlixPartners, founded in 1981 by Jay Alix, has advised on chapter 11 reorganizations including General Motors, Kmart, and Enron.
Final Fee Applications.
All professionals filed final fee applications on June 27, 2025, seeking approval of compensation for services rendered throughout the case:
| Professional | Application Type | Docket |
|---|
| Kirkland & Ellis LLP | Final | Dkt. 581 |
| Klehr Harrison Harvey Branzburg LLP | Final | Dkt. 582 |
| AlixPartners, LLP | Combined Fourth Monthly/Final | Dkt. 583 |
| Gordon Brothers Realty | First and Final | Dkt. 584 |
| Kelley Drye & Warren LLP | Combined Third Monthly/Final | Dkt. 585 |
| Cole Schotz P.C. | Combined Third Monthly/Final | Dkt. 586 |
| FTI Consulting, Inc. | Combined Third Monthly/Final | Dkt. 587 |
The First Omnibus Final Fee Order was entered on August 11, 2025.
The case also required retention of foreign counsel to address cross-border matters. Miller Thomson LLP was retained for Canadian matters, while additional counsel including Peter K. Chu and Metaverse Law Corporation addressed other international issues.
| Date | Event |
|---|
| 1991 | Volcom founded by Richard Woolcott and Tucker Hall with $5,000 loan |
| 2005 | Volcom IPO on NASDAQ raises $89 million at $19 per share |
| 2011 | Kering (then PPR) acquires Volcom for $608 million |
| September 2015 | Quiksilver files chapter 11 bankruptcy |
| 2016 | Quiksilver emerges under Oaktree Capital ownership |
| 2018 | Boardriders acquires Billabong and RVCA (~$250 million) |
| April 2019 | ABG acquires Volcom from Kering |
| 2019 | Liberated Brands founded by ex-Volcom executives |
| July 2021 | Liberated Brands secures Spyder license |
| September 2023 | ABG acquires Boardriders for $1.25 billion |
| December 2024 | ABG terminates all Liberated Brands licenses |
| February 3, 2025 | Chapter 11 petition filed (8+ debtors) |
| February 4, 2025 | Court approves motion to close 124 stores |
| February 5, 2025 | Interim DIP Order entered |
| February 7, 2025 | Gordon Brothers begins closing sales at all locations |
| March 5, 2025 | Bidding Procedures Order |
| March 19, 2025 | Final DIP Order |
| April 28, 2025 | Motion to Dismiss filed |
| May 1, 2025 | UCC professional retention orders |
| May 19, 2025 | Leasehold Sale Order |
| June 27, 2025 | Final professional fee applications filed |
| August 11, 2025 | First Omnibus Final Fee Order |
| December 2025 |
What is Liberated Brands and why is the bankruptcy significant?
Liberated Brands operated retail stores and wholesale distribution for surf and action sports brands including Volcom, Billabong, Quiksilver, RVCA, and Spyder. Founded in 2019 by former Volcom executives to operate Authentic Brands Group's action sports portfolio, the company grew to approximately 140 stores before its chapter 11 filing. The bankruptcy marked the end of dedicated retail operations for these brands' company-run stores and eliminated approximately 1,390 jobs across corporate and retail positions.
What caused the bankruptcy?
Authentic Brands Group terminated all licenses in December 2024 after Liberated Brands failed to make required royalty payments. Without the right to use the brand names, the company could not operate its retail and wholesale businesses. The company had expanded from 67 to approximately 140 stores and nearly tripled its workforce during the post-COVID retail boom.
What happened to Volcom and the other brands?
The brands remain owned by Authentic Brands Group and have moved to new wholesale licensees in North America. The bankruptcy was of the operator (Liberated Brands), not the brand owner (ABG). Volcom, Billabong, Quiksilver, RVCA, and Spyder continue to exist as brands; only the retail operations managed by Liberated Brands have ceased.
How many stores closed?
Gordon Brothers liquidated all 122-124 stores across the United States and Canada, including locations operating under the Volcom, Billabong, Quiksilver, Roxy, RVCA, Spyder, Honolua Surf, Beachworks, Becker Surfboards, ZJ Boarding House, and Boardriders banners. Store closing sales began just four days after the bankruptcy filing.
How much did the asset sale generate?
The liquidation generated approximately $65 million from inventory sales and lease assignments. However, this amount did not cover the secured debt owed to JPMorgan Chase Bank, leaving the bank with a deficiency claim and providing minimal or no recovery for unsecured creditors.
What is ABG's "asset-light" licensing model?
Authentic Brands Group acquires brand intellectual property and licenses it to operators, collecting royalties without owning stores or employing retail workers. The model achieves nearly 80% EBITDA margins for ABG, which owns more than 50 brands generating over $29 billion in annual retail sales globally. The structure concentrates all operational risk on licensees, who bear inventory, lease, labor, and working capital obligations while ABG retains the valuable intellectual property.
Who provided DIP financing?
JPMorgan Chase Bank, N.A. provided postpetition financing to fund the liquidation process. JPMorgan had been the prepetition secured lender and maintained its position through the bankruptcy, controlling the use of cash collateral and the pace of asset disposition to protect its secured claim.
What is the current case status?
The debtors filed a Motion to Dismiss in April 2025 after completing asset sales and store closings, but dismissal is contested by creditors including JobsRUs.com and Sierra Brown. The case remains formally pending through December 2025, with monthly operating reports continuing to be filed and dismissal litigation ongoing.
How does this relate to prior surf brand bankruptcies?
Quiksilver filed chapter 11 in 2015 and emerged under Oaktree Capital ownership, which later acquired Billabong and RVCA through Boardriders in 2018. ABG acquired the consolidated Boardriders portfolio for $1.25 billion in 2023. The surf and action sports retail sector has experienced over a decade of restructuring activity, with declining consumer demand and structural shifts challenging legacy brands.
Who were the key professionals in the case?
Kirkland & Ellis LLP served as lead counsel to the debtors, with Klehr Harrison Harvey Branzburg LLP as Delaware co-counsel. AlixPartners provided financial advisory services, Gordon Brothers handled liquidation and real estate advisory, and Stretto served as claims agent. The Official Committee of Unsecured Creditors was represented by Kelley Drye & Warren LLP with FTI Consulting as financial advisor.
For additional analysis of retail and action sports industry restructurings, explore our coverage on the ElevenFlo blog.
