Quiksilver files for bankruptcy in U.S.

NEW YORK - Quiksilver, a ubiquitous clothing brand at surfing hot spots from the U.S. to Australia, filed for Chapter 11 bankruptcy protection for its U.S. division.

The brand, founded in 1969 in Australia, enlisted a stable of huge names to represent its image over the years, including surfers Kelly Slater and Tom Carroll.

Yet after what turned out to be its golden decade in the 1990s, Quiksilver has faced rising competition, particularly in the U.S.

The company said Wednesday that its European and Asia-Pacific businesses are going strong and are not part of the bankruptcy filing.

"After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver," said CEO Pierre Agnes in a printed statement.

Quiksilver Inc. listed assets of more than $100 million and liabilities of more than $500 million in the filing.

Chapter 11 bankruptcy allows a company to continue operating while it executes a reorganization plan. Quicksilver asked the court to allow Oaktree Management to provide more than $175 million in financing for the company as part of the "debtor-in-possession" plan.

The company, based in Huntington Beach, California, plans to continue with an ongoing store-closing plan in the Americas. It is scheduled to report third-quarter financial results later Wednesday.

Shares have plunged almost 80 percent this year as the company wrestled with both shipping and accounting issues. It was forced to delay its first-quarter earnings report in March due to a "revenue cut-off issue," and CEO Andy Mooney left the company that same month.

Trading in shares was suspended at the opening bell Wednesday.