Liberated Brands has filed for Chapter 11 bankruptcy protection, according to court documents. The filing came months after losing part of its licensing agreement for the Boardriders portfolio.
The company listed both its assets and liabilities as being between $100 million and $500 million. Liberated’s listed creditors hold unsecured claims ranging from $566 million to $3.2 billion.
Liberated handled the retail and e-commerce operations in the U.S. and Canada for the portfolio, which includes Billabong, Roxy, Quiksilver, RVCA, Honolua and Boardriders, through a licensing agreement with Authentic Brands Group. It was also the licensing partner and wholesale distributor for Billabong, RVCA and Honolua in the U.S. and Canada.
However, in December 2024, Authentic ended part of the licensing agreement with Liberated as a result of its default under the licenses, according to Liberated CEO Todd Hymel’s statement in the court filings.
Prior to reaching the agreement with Authentic, Liberated saw its revenue increase from $350 million in 2021 to $422 million in 2022, according to Hymel. He attributed the jump to product demand during the pandemic and a series of license acquisitions.
The company faced macroeconomic issues after that, including a rise in interest rates, inflation, supply chain delays and a decline in customer demand, which created what Hymel called “significant liquidity challenges in 2024.”
In January, Liberated laid off 363 people due to the closure of its Costa Mesa, California headquarters, according to state WARN data. It additionally laid off 1,040 retail staff, according to Hymel’s remarks.
David Brooks, executive vice president of action and outdoor sports and lifestyle at Authentic, said that on the occasion a partner is not able to fulfill its commitments, Authentic will transition the license agreement to other operators in its network.
“Liberated’s U.S. store fleet was overinflated, burdened with outdated and underperforming locations,” Brooks said in an email to sister publication Fashion Dive. “As a result, physical U.S. based stores will likely be rationalized, allowing the brands to create more value and strengthen their presence across specialty retailers, department stores, and e-commerce — ensuring a more agile and resilient future.”
He added that Authentic has been providing support to Liberated “as they evaluate their opportunity to reorganize their business and regain profitability.”
Authentic has a 19.9% minority ownership stake in Liberated, per the bankruptcy filing and as previously reported by Fashion Dive. An Authentic spokesperson referenced an article from Shop Eat Surf Outdoor, which identified Authentic CEO Jamie Salter as having a stake in Liberated.
Liberated didn’t immediately respond to sister publication Fashion Dive’s requests for comment.