US private equity firm Altamont Capital Partners has taken effective control of troubled surfwear retailer Billabong, with its CEO to be replaced as part of the new deal.

The deal will see the firm take over the company’s debt as well as see current Billabong CEO, Launa Inman, be replaced by Scott Olivet, a former executive of sportswear brand, Oakley, after just 14 months in the role.

“The board believes that the Altamont Consortium’s refinancing, and the changes being announced today, provide the company with a stable platform and the necessary working capital to continue to address the challenges it faces,” Billabong said.

Altamont will lend Billabong $325 million in return for two positions on its board and up to 15 per cent of its shares. Billabong has also agreed to sell its clothing and accessories brand, Dakine, for $70 million.

“We had highlighted the company’s debt issues previously and it was imperative to deliver a refinancing that retained an opportunity for shareholders to participate in the future of the company. The Altamont Consortium presented the best available, certain and executable opportunity in these challenging circumstances,

“The transaction reflects the Altamont Consortium’s confidence in the value of Billabong’s brands and our company’s ability to achieve future profitable growth.”

In the past 18 months the company has been the subject of six takeover offers, all of which have fallen through.