Quiksilver's multi-million $ loss

By Tracey Porter

28 Aug 2008

NATIONAL: Surfwear group Quiksilver has been forced to absorb a $A201 million hit after selling one of its labels for less than half the price it paid for it just three years ago. The apparel and accessories group, founded in Australia by Alan Greene and John Law but now headquartered in the US,  announced it has sold French ski label Rossignol for about $A147 million.  

The sale, to Macquarie Bank-backed group Chartreuse & Mont Blanc, comes after Quiksilver acquired the French ski maker for $A372 million in cash and stock in 2005.

The company announced plans to sell the owner of the Rossignol, Dynastar and Lange brands of winter sports equipment and apparel to reduce its exposure to winter-sports equipment manufacturing. It now intends refocusing on its Roxy and DC apparel and footwear brands.

In other Quiksilver news US department store Nordstrom has been ordered by a judge to stop selling Quiksilver's Charlotte brand following a trademark dispute with New York accessories firm.

GMA, which makes apparel for chain stores under the brand names Charlotte and Capelli, sued Quiksilver and Nordstrom last year for allegedly violating US trademarks for Charlotte that were registered by GMA in 1999 for use on clothing, hats, footwear, bags and other accessories.

The ruling means Nordstrom is "permanently enjoined from the use of the word Charlotte or any marks likely to cause confusion with the word Charlotte".