|Andy Irons for Billabong|
Unlike the American rival Volcom, that has been recently bought by Gucci's PPR Group, and has a bright future ahead the Australian surfwear company Billabong is not doing well and its future may be at stake. According to the Telegraph, the shares in Billabong crashed by 36pc following a heavily discounted rights issue. Lately, the company has been hit by hit by poor trading and a failed takeover bid.
A rep from Sydney's City Index said that “I don’t think there is any faith in the business. It’s not a Nike or a Louis Vuitton, in terms of brands, it is not at the same level as other brands, which have managed to restructure and reinstate a valuation multiple.”