Surfwear company Billabong International said it had agreed to sell West 49 to YM Inc. YM Inc would buy the Canada-based retail store for a price tag of anywhere from CAD 9 million to CAD 11 million. A fashion retailer, YM operates the Stitches, Urban Planet, Sirens and Bluenotes brands.
Billabong and YM Inc also agreed on a supply agreement for two years. Billabong would continue to own its six stores and two Element stores located in Canada.
In a statement, Billabong Chief Executive Officer Neil Fiske said, "The sale of West 49 is part of our broader strategy of simplifying our business and focusing on the core of what we do best, which is building strong global brands."
Reuters reported that Billabong had gone through a rocky period in the past year and a half. To manage its sluggish sales, the company had sold assets, restructured debt and made management changes. Billabong also accepted a refinancing plan from Oaktree Capital Management and Centerbridge Partners.
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