Bernard Mariette has resigned as president of Quiksilver with immediate effect to pursue other interests, including a possible bid to acquire the Rossignol group. Robert B. McKnight, who remains chairman and chief executive, has resumed the role of president, confirming the group’s intention to concentrate on the Quiksilver, Roxy and DC brands in the future while reducing its exposure to the winter sports equipment business acquired in 2005. The announcement lifted Quiksilver’s depressed stock market quotation by 7.20 percent immediately and by 5.78 at the day’s closing.
Mariette has agreed to remain at the group’s disposal as a consultant for one year on any items other than those relating to the Rossignol group. The 45-year-old French manager has been with the group for 15 years and he has been largely responsible for its tremendous growth. Previously with L’Oréal, he took charge of Quiksilver Europe when it was still in the development stage in 1994, and grew it to become a $250 million business by 2001, diversifying the product range, boosting its retail operations and addressing a broader lifestyle market.
In 2001 he moved with his family to California. Since then, Quiksilver has almost quadrupled in size through a combination of strong organic growth and acquisitions. Mariette was instrumental in leading the takeover of the Rossignol group in 2005, justifying the relatively high price of €360 million paid to the Boix-Vives family with the opportunities offered by such a counter-seasonal business and for the development of apparel and other product lines under this well-known international label.
However, the unpredictable weather has played against Rossignol, causing sales declines and pre-tax losses of more than $50 million that have weighed heavily on Quiksilver’s already strained finances. The banks and the investment community have been very critical of the charges associated with the takeover, including high restructuring costs and interest payments, and they have called for a reduction of the company’s high debt. The sale of Cleveland Golf to the parent company of Srixon last December was a first step in that direction, but it has been deemed as insufficient.
Numerous parties have shown interest in the acquisition of Rossignol, and these proposals are being examined by JP Morgan. It would not be surprising to see Mariette supported by an institutional investor who can be persuaded about the viability of his business plan, coupled with his track record at Quiksilver. However, he may be open for other options as well.
Mariette continued to be very hot about the potential of Rossignol at a lengthy breakfast interview during the ISPO show in Munich earlier this month, just after his friend and collaborator David Morgan was appointed as president of the French group, a post that he will continue to hold on an interim basis.
Morgan will continue as chief operating officer of Quiksilver, overseeing among other things the group’s global sourcing. He will be one of three corporate officers reporting directly to McKnight. The other two are Joe Scirocco, chief financial officer, and Charlie Exon, the general counsel, who will also act as chief administrative officer, in charge also of global communication and human resources.
Three regional presidents will also report directly to McKnight. Pierre Agnes will continue as president of Quiksilver Europe and Marty Samuels will continue to be in charge of the Americas. Craig Stevenson, global brand manager of the Quiksilver brand, will assume additional responsibilities as president of Quiksilver South Asia/Pacific, based in Torquay, Australia.
