Quiksilver, Billabong and Volcom are expected to shut over 100 stores across the United States.
This comes after their managing licensee Liberated Brands filed for Chapter 11 bankruptcy.
Liberated shared in a statement that it is currently in the process of transitioning its brand licences to new holders.
"The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living and inflationary pressures have all taken a heavy toll," the company added.
It is unclear if this will affect Quiksilver, Billabong and Volcom’s distribution in Australia, however it is noted that their Australian websites are operational as of writing.
According to court filings read by Ragtrader, Liberated’s estimated liabilities are expected to be between USD$100 million to USD$500 million, with one top creditor reportedly owed USD$3.1 million.
The estimated number of creditors is between 5,000 and 10,000.
In Australia, Quiksilver manages 12 stores and a Roxy outlet store. Volcom manages 11 stores across Australia and Billabong manages 18 stores and outlets in the country.