Manager of retail operations for major surf brands like Billabong, Roxy, Quiksilver, RVCA, Honolua, and Boardriders, Liberated Brands has filed for Chapter 11 bankruptcy protection.

The company operated online and in-person stores through a licensing agreement with Authentic Brands Group, which owns the brands. The agreement ended in December, with Authentic Brands Group transitioning to a new wholesale licensing model. All 122 Liberated Brands stores are conducting closeout sales and will permanently close after liquidation. In January, the company laid off over 360 corporate employees and more than 1,000 retail workers.

According to Liberated Brands volatile global economy, changing consumer spending habits due to rising costs of living and inflation contributed to its bankruptcy. The company expressed hope that many of its employees would find new opportunities with other license holders.

The retail industry continues to face significant challenges. The early 2020s saw widespread store closures due to the COVID-19 pandemic, followed by a surge in shoppers and operational difficulties due to capacity restrictions. Smaller businesses struggled to survive without robust sales, while larger corporations were better positioned to weather the storm.

Rising interest rates have further exacerbated the situation, making borrowing more expensive and hindering retailers' ability to scale and expand. Many have been in survival mode, and numerous businesses have closed.

In 2024, approximately 500,000 businesses filed for bankruptcy, a 14 per cent increase from the previous year. According to Coresight Research, a further 15,000 store closures are expected in 2025, with a focus on Chapter 11 bankruptcy filings, liquidations, and major overhauls for surviving retailers.