A director of surfwear retailer Billabong International has resigned due to a potential conflict of interest involving one of the company's major shareholders.
Billabong on Tuesday said Matthew Wilson, who joined the Billabong board in November 2013 as a representative of major shareholder Oaktree Capital Management, had quit.
"Mr Wilson has decided to resign due to a potential conflict in Oaktree's investment portfolio," Billabong said.
Consequently, an alternate director for Mr Wilson, Thomas Casarella, had also resigned.
When asked for more detail, a Billabong spokesman said he could not speak for Oaktree.
A consortium comprising investment firms Oaktree Capital Management and Centerbridge Partners holds more than 38 per cent of Billabong shares.
The consortium recapitalised Billabong in 2013, providing a $386 million loan and taking up a $135 million placement of Billabong shares.
In return, the consortium nominated representatives to Billabong's board, including Mr Wilson, a managing director at Los Angeles-based Oaktree Capital Management.
Mr Wilson led Oaktree's retail and consumer investing efforts, including investments in the apparel, retail, consumer products, food, beverage, and restaurants sectors.
Billabong recently reported its first full-year profit in five years.
Its chairman, Ian Pollard, said Mr Wilson and Oaktree were strong supporters of Billabong's turnaround strategy.
Billabong shares were 1.5 cents lower at 56 cents at 1405 AEST.
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