E-tailer mulling IPO

 

surfstitch2SurfStitch, an Australian online retailer partially owned by Billabong, is considering a public listing or trade sale.

Justin Cameron, co-founder of SurfStitch, has told Fairfax that an initial public offer (IPO) is “something being considered currently”.

SurfStich was founded in 2007 and sells sports, swim, and fashion items online.

It also has five stores in Europe, and manages Billabong’s e-commerce platform, along with 20 other websites.

It’s fast rise to the top garnered a host of trade show appearances and industry accolades from 2010.

Cameron says SurfStitch is the world’s largest online website of its kind, with turnover set for $80 million this financial year.

Its biggest competitor in the US is Swell, also owned by Billabong, and Blue Tornado in Europe.

Billabong not so swell

Billabong, which partially owns SurfStitch, has been offloading assets as the retail group continues to struggle.

The surfwear retailer sold its Canadian business, West 49, for $11.1 million this month.

In August, the troubled company reported a net loss of $860 million with major writedowns and a drop in revenue.

The 2012/13 result was affected by $867 million in significant items, including more than $604 million in writedowns in the value of goodwill, brands, and other intangibles.

Last month, Billabong International appointed the company’s former head of retail in the US, Ed Leasure, as acting president of the Americas.

 

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