HUNTINGTON BEACH, Calif. (AP) -- Quiksilver has sold its snowboard subsidiary Mervin Manufacturing for $58 million and plans to sell some other non-core businesses.
The Huntington Beach, Calif., company, which sells skateboarding- and surfing-inspired clothes, said Tuesday that the other non-core businesses include Surfdome Shop Ltd., Hawk Designs Inc., its Moskova brand and its business under license with Maui and Sons.
President and CEO Andy Mooney said in a statement that selling Mervin and the other non-core businesses allows the retailer to focus on its three core brands — Roxy, DC Shoes and Quiksilver.
The CEO said that the company used part of the proceeds from the Mervin sale to invest in its subsidiaries in Mexico and Brazil. It now has full ownership of the operations in both countries.
Mooney said remaining proceeds from the Mervin sale, as well as its new 60 million euro European credit facility ($81.5 million), will help improve its financial flexibility and make its liquidity more stable.
Quiksilver Inc. said that the transactions are part of its multiyear profit improvement plan.
Its shares finished at $8.70 on Monday. They have almost doubled so far this year.