Surfstitch: When an IPO ain't an IPO
Sounds like a bad decision to me, I'd be investing more into online rather than getting rid of it!
"So why would Quiksilver decide to sell off their stake in online retailing?"
Cash inflow to cover another whopping loss?
Added taxes or laws to online retail could change interest in owning them. I hear the aussie govt wants more taxes on online shopping not sure about UK.
I wonder if Clay Marzo is back with Quicksilver. They dropped him last year in financial trouble and everyone was shocked but he might be back with them now.
And now it looks like an IPO. From today's Australian Financial Review:
"SurfStitch will take about a dozen fund managers to its Gold Coast head office this week, as it seeks to progress plans to buy back major shareholder Billabong and pursue a $300 million ASX listing."
This came across my LinkedIn account today:
Yep, gotta move A LOT of product to make the gross profit to make the coin to pay 'em all ...
mmm, interesting ...
Did you see this Ben?
"SurfStitch has had a hectic last few months; with their buying out of major shareholder Billabong back in August and near-constant rumours of an public offering on the horizon, the company’s success is more firmly in its own hands than it has been in a while. With this in mind, remedying any possible weakness in the business model is paramount, and as rising cart abandonment rates began to become a greater problem, action was needed."
"As a result, SurfStitch has seen improved cart recovery rates, a quadrupled conversion rate and increased revenue from its range of recommended products ... The changes were soon rolled out over the brand’s European sales channels, and saw similar success there."
From here: http://www.powerretail.com.au/insights/surfstitch-barilliance-insight/
Some interesting articles about Surfstitch across the mainstream news last week:
"Co-founder Justin Cameron told Fairfax Media the business is assessing its options, with an IPO or trade sale on the cards. “It's something being considered currently,” he said."
An article in the Courier Mail the next day told a different story:
"As the majority shareholder of SurfStitch, Billabong International has no plans to undertake an IPO," Gold Coast-based Billabong said on Friday.
Oh dear, this is a bit awkward...
Of more interest - this is the first time I've seen a public acknowledgment that Billabong own 51% of the company (Billabong also own 100% of US-online retailer swell.com).