Quiksilver has filed for bankruptcy - but there's a dramatic twist.
The embattled action sports retailer has placed its American arm into bankruptcy and announced a major restructuring.
In a twist, the restructure will see investment company Oaktree Capital take control of Quiksilver as part of a US$175 million refinancing.
Oaktree Capital is the largest shareholder of rival Billabong.
Quiksilver has been plagued with sales declines, posting a loss of US$309 million in 2014.
Quiksilver CEO Pierre Agnes said the difficult decision was necessary to secure a brighter future for the brand.
"With the protections afforded by the Bankruptcy Code and the financing provided by Oaktree, we will not only be able to satisfy our ongoing obligations to customers, vendors and employees, but we will also have the flexibility needed to complete the turnaround of our U.S. operations and re-establish Quiksilver as the leader in the action sports industry.
"Our fresh capital structure, with a very low level of debt for our industry, will enable us to invest in and reinvigorate our brands and products. We are confident we will emerge a stronger business, better positioned to grow and prosper into the future.
"Oaktree’s financial strength and expertise, deep experience working with companies in situations similar to ours, and successful history operating in our industry make them an exceptional partner for us going forward.
"We value our wholesale customers as well as our vendors and suppliers and appreciate their support through this process. In addition, we thank our passionate and dedicated employees and athletes who remain our greatest assets. Quiksilver is, and as a result of this process will continue to be, an iconic leader in the action sports market."
Quiksilver European and Asia-Pacific businesses and operations remain strong and are not part of the filing.