Billabong mulls over the sale of its smaller brands

London - Billabong is currently considering lightening its load by selling off a number of its brands such as VonZipper, Tigerlily and Xcel to help shrink down its 270 million dollar debt.

During the Australian company's AGM, president Ian Pollard underlined Billabong's aim to turn its focus on strengthening its core brands Billabong, Element and RVCA. "The simplification of our brand portfolio plays an important role in implementing our strategy," said Pollard in his meeting address. "We are currently reviewing a number of our smaller brands, including Tigerlily, VonZipper and Xcel, with a view to possible sales that will pay down debt and continue to simplify our portfolio."

However, the surf and outdoor apparel company are keen to ensure the brands go to the right owners, for the right price. "Shareholders can be assured that unless we get full value for these high-quality brands, we will hold them and look to grow them," added Pollard. Billabong first acquired VonZipper, a board sports sunglasses specialist in 2001. Then, in 2007 the company bought women's swimwear brand Tigerlily from its founder Jodhi Meares. In the same year, the company bought surfing accessories brand Xcel.

The potential sale of Billabong's smaller brands comes not long after the company sold its long board brand Sector 9, for approximately 12 million dollars. Billabong's current store portfolio also counts footwear labels Honolua and Kustom, in addition to surfing accessories brand Palmers Surf.

Photo: Billabong, website