Liberated Brands to Close Costa Mesa Offices, Laying Off 400 Employees

News Summary

Liberated Brands, a distributor for surf brands like Billabong and Volcom, is closing its Costa Mesa offices, resulting in nearly 400 layoffs. This corporate restructuring is a response to ongoing difficulties in the surf industry, with many employees transitioning to new license holders. The news follows previous layoffs in the sector and raises concerns about brand authenticity amid corporate ownership shifts. Despite the challenges faced, optimism remains as some displaced workers may find new opportunities with incoming licensees as the surfing market adapts.

Costa Mesa, CA – Liberated Brands, the distributor for a range of surf brands including Billabong, RVCA, Honolua, and Volcom, is set to close its corporate offices in Costa Mesa, leading to the layoff of nearly 400 employees. The decision, which is part of a company-wide restructuring, was officially communicated through a California Worker Adjustment and Retraining Notification (WARN) issued on January 8. This closure reflects ongoing turmoil within the surf industry and is anticipated to be a permanent move.

The layoffs will affect numerous positions across the organization, including executives, designers, project managers, accountants, and warehouse workers. Employees received notice that their roles would be terminated as the company transitions its brand licenses to new license holders, many of whom are actively interviewing those affected by the layoffs. This comes on the heels of a company-wide town hall that took place in December, during which the impending changes were hinted at but not fully detailed.

In 2023, Liberated Brands had managed retail and e-commerce operations for several labels under Authentic Brands Group, including Quiksilver and Roxy, in both the US and Canada. Previously, the company served as the licensing partner and distributor for the aforementioned surf brands in North America. The recent wave of layoffs follows a similar trend within the surf industry, which has seen other companies, including Boardriders Wholesale LLC, cut approximately 80 positions amid declining sales and brand management shifts.

The surf industry has experienced heightened anxiety since Authentic Brands Group’s acquisition of several major surf brands in September 2023. In 2022, Liberated Brands had already laid off about 170 workers, primarily in the U.S. and Asia, indicating a larger concern over corporate ownership impacting brand authenticity and connection to the surfing community. Industry insiders have expressed worries that the corporate decision-making processes may be disconnected from the core values of the surfing culture.

Concerns include the loss of authenticity for legacy brands that were once deeply connected to the surf lifestyle and community. As sales of major surf brands continue to decline, consumers are increasingly selective about the brands they support, seeking alignment with surfer values and authenticity. Despite these challenges, new licensing arrangements for surf brands are being established, although maintaining relationships within the industry remains complex due to high turnover rates.

In light of these changes, there are positive signs as well, with Vipe Desai of the Surf Industry Members Association noting that there was a palpable positive energy among brands at the recent Surf Expo, despite the absence of legacy brands. Many believe that those workers displaced by the closures and layoffs will secure new positions with the incoming licensees, fostering a more agile workforce in the surf industry.

The potential for growth in the surfing sector remains as participation in the sport increases and alternative venues, such as surf parks, gain popularity. Additionally, the upcoming Olympics is expected to provide a boost to the industry’s visibility and momentum. Thus, while the restructuring at Liberated Brands marks a challenging chapter for many employees and the surf industry as a whole, there are glimmers of hope that certain aspects of the market may thrive in the future.

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Additional Resources

• Surf Industry Association
• Wikipedia: Surfing
• Boardriders Inc.
• Encyclopedia Britannica: Surfing
• Surfer Magazine
• Google Search: Surf Industry News