Billabong International has sold its multi-brand, surf-related e-commerce operations to an investors' consortium that includes the founders of Surfstitch, Justin Cameron and Lex Pedersen, for total proceeds of more than 35 million Australian dollars (€25.29m-$32.73m). The assets being divested are Billabong's 51 percent stake in Surfstitch.com, the Australian online surfwear store that covers also Europe, and Swell.com in North America.
Billabong says the move will further narrow its strategic focus, allowing it to invest more in the development of an omni-channel sales platform for its own remaining brands, Billabong and Element, and the licensed RVCA business. Their e-commerce operations were previously outsourced to Surfstitch, which will continue to act as a wholesaler for Billabong's brands.
The disposal is expected to be accretive to Billabong's earnings. It is part of a seven-point turnaround strategy outlined last December by Neil Fiske, the chief executive of the recently refinanced Australian-based group.
