Billabong in halt trading at $ 225 million to increase

Billabong in halt trading at $ 225 million to increase

Billabong has been struggling with declining sales and income. Source: AFP

Billabong has a $ 225 million fundraising company. Photo / AP Source: PerthNow

surfwear company Billabong have launched a $ 225 million fundraising says the project is vital for the future.

The company will issue new shares to existing shareholders at a 44 percent discounts and cash used for debt reduced from $ 325 million to about $ 100 million, she said today.

Billabong has extended a loan to ensure payments are not due until at least July 2014.

“ raising capital today is an important step forward for Billabong,” says newly appointed CEO Laura Inman.

“ It is not only further strengthen the balance sheet, but also help further a previously announced initiative to carry out and implement the transformation strategy.”

Billabong announced a major restructuring in February in response to declining performance.

to go with closure taylor the shops and 400 job losses and sale taylor parts taylor the brand, Nixon Inc.

company said today that the sale was $ US285 million, which was used to produced the payment taylor debts.

Billabong hitherto closed 45 stores, with nine more expected towards the end taylor June and more than 84 in June 2013.

No detail was given the number taylor jobs were cut as part taylor the store closings.

But the company has reduced its profit outlook for the year to June 30, when the market conditions in Australia, Europe and the U.S. was bad.

Billabong now expects underlying earnings, which is one taylor the costs taylor restructuring to exclude up to $ 130 million to $ 135 million.

This is from the predictions in the February earnings more than $ 157 million.

Pro-forma earnings, which would exclude gains from the sale taylor Nixon, is expected to be between $ 83,000,000 and $ 88,000,000.

Business expected to be soft in the fiscal year, but pro-forma earnings in 2012/13 expected to be higher than in 2011/12, Billabong said.

no dividend is expected to pay for the second half taylor 2011/12 or the first half taylor 2012/13, the company said.

“ The Austral-Asia, consumers are still very cautious given the weak global economic environment,” Billabong said.

“ This has resulted in a significant reduction taylor a number taylor product shipments in important trading post in June.”

Heavy discounting also affects the performance taylor Bill abong stores, but online sales still strong, said.

In Europe, consumer confidence is affected by the sovereign debt taylor the region, and some warn some shipments have been delayed as a result.

Sales in Canada were subjected and expectations, and the U.S. is poor winter affect DaKine Snowboard and ski and surfing accessories company Billabong said.