MUNICH — Warming weather and a darkening economic climate underscored Quiksilver Inc.'s decision to off-load French ski apparel and equipment firm Rossignol.
"Winter 2006 was the worst winter in history. Combined with tough economic times, we were forced to find ways to reduce our debt," Quiksilver president Bernard Mariette told WWD here Monday at the International Trade Fair for Sports Equipment and Fashion, also known as ISPO.
"We were getting a lot of pressure from the shareholders to sell Rossignol. What we thought we could do in three years would ultimately take five years to accomplish," Mariette said of the decision to sell. "Due to the economic and environmental climate, five years is too long to wait. We need immediate results, which is why we have decided to sell the company."
Quiksilver purchased Rossignol in 2005 for $320 million in cash and stock.
Mariette declined to comment on the value of Rossignol, but noted that potential suitors have already been in touch. He estimated a deal would be struck in the next six to nine months.
Over the past two years, Rossignol reduced its annual ski production from 1.6 million skis to 1 million in 2007. It also trimmed its factory and warehouse operation to focus on building the brand's apparel business, which had been the next step in Quiksilver's plan to transform Rossignol into an outdoor sports lifestyle company.
Rossignol's fall 2008 selection of ski and outdoor looks for women, on show here, were already beginning to exhibit Quiksilver's trademark edgy take on sports apparel. A heritage 1907 line, designed for on and off the slopes, was garnering attention at the show, which will wind up its four-day run Wednesday.
"We still firmly believe in Rossignol. We have a clear vision for the brand," Mariette said.
In December, Quiksilver sold Cleveland Golf Co. Inc. for $132.5 million to Japan-based SRI Sports Ltd. A stake in Cleveland Golf was originally part of Quiksilver's acquisition of the Rossignol Group in July 2005. Speculation had been escalating in recent months that the Huntington, Calif.-based Quiksilver would continue to reduce its exposure to the hard goods manufacturing business, which continues to be its Achilles' heel.
Donatella Versace will receive the International Award at the 2018 @cfda awards, which were announced tonight. Tap link in bio for a list of all the nominees and honorees. #wwdnews #wwdfashion (📷: @rahirezvanistudio )
The 2018 @cfda Awards nominees are out! @virgilabloh for @off____white for is nominated for Womenswear Designer of the Year. Tap link in bio for all the nominees. #wwdnews #wwdfashion ( 📷: @simonelezzi)
@chanelofficial is suing high-end vintage retailer @whatgoesaroundnyc for trademark infringement, a move that could cost the retailer millions. The French fashion house claims that it’s not only unintentionally sold counterfeit goods on occasion, but that it’s “gone out of its way to create an association with Chanel,” which does not exist. Read Chanel’s statement on WWD.com #wwdnews (@aitorrosasphoto)
Exclusive: Guillaume Henry has left @ninaricci, the fashion house said on Thursday. “After three years of mutually gratifying creative collaboration, Nina Ricci and Guillaume Henry have together decided that the designer will depart the house after the presentation of the fall-winter 2018-19 collection,” Ricci said in a statement. Get all the details on WWD.com #wwdfashion (📷: @aitorrosasphoto)
“When Bella enters a room all heads turn,” said @peterphilipsmakeup, creative and image director for @diormakeup. Last night, the two celebrated the product launch of Dior’s Lacquer Plump in Los Angeles with other celebs like @parisjackson, @winnieharlow and more. Head to WWD.com to see the rest of the photos from the night (📷: @chelsealaurenla) #wwdeye
“These shirts are an art form, it’s about getting the message out to as many people as you can. It breaks down the pretentiousness of the art gallery,” says Kumasi Sadiki, cofounder of @ebayontheblock, a store that sells merchandise by New York artists who are shifting their attention to clothes as a wearable medium. Pictured here is a design by artist @joegarvey_, one of the first to spearhead this movement. Head to WWD.com to read @mistywhitesidell full story on how their designs have become merch for the underground elite #wwdfashion
@netaporter is dedicating a part of its website – called the Fine Jewelry and Watch Destination – to highlight its high-end jewelry. The hub will feature products on the site, as well as incorporate styling advice and educational content about high-priced jewelry items. Get more details on WWD.com. #wwdaccessories
For “The Cher Show,” an upcoming musical based on @cher’s life and career, @bobmackie is once again collaborating with the singer in designing the costumes. For decades, Mackie has designed glitzy stage costumes and red carpet looks for the 71-year-old Grammy winner. Pictured here is a sketch of some of the pieces in the wardrobe of the musical, which is set to debut in Chicago on June 12 before making its way to Broadway #wwdeye