Billabong has announced raising A$291 million (approximately €166.9 million). A fair part of the funds will be allocated to pay back the sportswear brand’s net debt, which has risen to A$650 million.

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Even though official figures for how this amount will be split are yet to be released, the Australian press is reporting that around 70% will be dedicated to reducing the group’s debt. Details of the origins of the funds are clearer. After having revised and reduced its provisional 2009 report a week ago, Billabong has announced that it collected A$230 million from specialist funds. The remaining A$61 million was raised through the issue of stock under an offer of “11 for 2”.

This fund-raising comes a few days after its American competitor Quiksilver obtained $150 million from the investment group Rhône, an act which itself came after the label renegotiated its $200 million of debts with the Bank of America and GE Capital.

By Jonathan Fulwell (Source: Matthieu Guinebault)