Struggling surfwear retailer Billabong has sold another of its brands and completed a $325 million bridge loan in order to pay off looming debts.
DaKine, a maker of backpacks, luggage and outerwear for snowboard, skiing, surfing and skating, was sold to US private equity firm Altamont Capital Partners for $70 million.
It is the second brand sold by Billabong in 15 months, after it offloaded a 48.5 per cent stake in Nixon accessories in April 2012.
The DaKine sale was part of a rescue deal made between Billabong and Altamont, which could result in Altamont holding a 40 per cent stake in the retailer.
Altamont's loan to Billabong, which attracts a 12 per cent annual interest rate, was drawn down on Friday, allowing Billabong to repay a $289 million debt.
Altamont has also nominated two new directors to the Billabong board, who will stand for election at the retailer's annual general meeting in October.
As a condition of the deal with Altamont, Billabong chief executive Launa Inman has stood down after just 14 months with the company, and has been replaced by Scott Olivet, the former boss of sunglasses brand Oakley.
Billabong has been hit by weak sales in recent years, especially in the US and Europe, and has found itself struggling with an oversized debt burden.
Billabong shares dropped half a cent to 41.5 cents.
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