As bad as things have been for beleaguered surf industry company Billabong, they could get a whole lot worse.
If you’re an employee of Billabong that is.
Bain Capital, a private investment and equity firm known more for being the company formerly run by Republican Presidential Candidate Mitt Romney, is interested in a takeover bid of surf industry company Billabong, which last week posted its first annual loss since becoming a public corporation over a decade ago. Bain is reportedly offering a similar amount to what another private equity firm, TPG Capital offered in July, $1.45 a share to takeover the struggling company.
Billabong, a public surf company based in the Gold Coast of Australia, had its trading of stocks halted following the failed attempt by TPG Capital to purchase the company earlier this year after its stocks experienced a 78% drop in its value over the past 12 months. The company continues to be mired in financial difficulties, with the Billabong brand and its subsidiaries including Von Zipper, Element, RVCA, Dakine and Swell.com also struggling.
In an official statement Billabong announced that, “it received an indicative, non-binding and conditional proposal from another party interested in acquiring all of the shares in the company and which states “we currently propose a cash consideration value of around $1.45 per share”.” According to the New York Times the other party is Bain Capital, which has a reputation for buying struggling corporations, significantly downsizing the company and then either selling off the company or claiming bankruptcy while collecting a strong profit.