Struggling surfwear brand Quiksilver Inc. has filed for bankruptcy.

The company had been rumored to be seeking a buyer after it hired Peter J. Solomon to help it find financing. More recently, reports surfaced that the company had shed as many as 80 jobs at its headquarters this month and, on Tuesday, shares plummeted 67 percent in after-hours trading on a now-confirmed report that Chapter 11 was looming.

Oaktree Capital Management LP and Bank of America are offering $175 million in debtor-in-possession financing, which would need to be approved by a bankruptcy court judge. Oaktree would also fund any other expenses related to the bankruptcy and upon the company’s exit out of Chapter 11, would have its debt converted into company stock.

“After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver,” said Quiksilver ceo Pierre Agnes in a statement. “With the protections afforded by the bankruptcy code and the financing provided by Oaktree, we will not only be able to satisfy our ongoing obligations to customers, vendors and employees, but we will also have the flexibility needed to complete the turnaround of our U.S. operations and re-establish Quiksilver as the leader in the action sports industry. Our fresh capital structure, with a very low level of debt for our industry, will enable us to invest in and reinvigorate our brands and products. We are confident we will emerge a stronger business, better positioned to grow and prosper into the future.”

The bankruptcy filing affects only the company’s domestic business and leaves out the European and Asia-Pacific operations which the company said in a statement “remain strong.”

The bankruptcy filing caps a particularly rough few years for the action sports company in which its business struggled under a debt load that remained from the failed purchase of Skis Rossignol, which was ultimately sold at a loss to the company, along with continued competitive pressures and a changed consumer landscape in which heavily branded product is no longer as coveted.

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