Billabong posts first annual loss

AILING surf wear company Billabong will close 82 struggling stores after it announced a $275 million net loss on Monday.

The result was the company's first loss since 2001 and highlighted just how far it has plummeted in a short space of time.Billabong shares were trading at $1.31 on Monday, significantly less than the $17 traded just five years ago.

The store closures, combined with the shutting down of 58 under-performing stores in the past financial year, are expected to save the company $6 million before tax in the current financial year.

A Billabong spokesman said the bulk of the store closures would be overseas.

Closing under-performing stores formed part of the strategic capital restructure announced in February.

News of the loss, no doubt, will increase pressure on Billabong's major shareholder, board member and founder Gordon Merchant.

Mr Merchant is perhaps best known in the Clarence Valley for his multi-million-dollar home at Angourie built across three blocks.

In February, he used his 15% stake in the company to block an $850-million takeover bid by TPG Capital.

The United States private equity firm remains interested in Billabong and currently is examining the books.

The Billabong spokesman would not comment on TPG interest's interest in a takeover other than to say "due diligence was under way".

Meanwhile, Billabong used Monday's announcement to reveal details of a four-year strategy designed to reverse the company's fortunes.

Billabong CEO Launa Inman said in a statement the strategy would target "cost savings and revenue growth".

The "transformation strategy" will be aimed at simplifying the business, globalising its supply chain and leveraging Billabong's brands.

The strength of the Australian dollar added to the company's not insignificant challenges.

Despite its struggling share price and significant 2011-12 loss, Billabong CEO Launa Inman said she was confident the company remained profitable.

"As previously flagged to the market, the group's results have been adversely impacted by various significant and exceptional items," Ms Inman said.

Topics:  asx billabong profits stock market

Dreamworld deaths: How could it have happened on this ride?

Thunder River Rapids is the last ride you could imagine such horror

Casuarina Beach Rugby Club to launch senior side in 2017

BIG NAMES: Adam Wallace-Harrison and former Waratah  Adam Leach are ready to launch Casuarina senior rugby.

Green light to go for Casuarina senior rugby

Girl guides gather

The group of ladies meet every year to remember their time as Girl Guides.

Girl Guides from the past reunite.

Local Partners

Steve Irwin's final days through dad's eyes

Bob Irwin with his son Steve.

'You never expect that’s the last time you’re going to see your son'

Kristie doesn't mind being the third wheel in Survivor final

Kristie Bennett in a scene from Australian Survivor.

SOLO player will take on Survivor's power couple Lee and El tonight.

Scary hoping Posh and Sporty will re-join The Spice Girls

Mel B

Mel B hoping Victoria Beckham, Mel C will re-join The Spice Girls

REVIEW: Michael McIntyre has Brisbane in stitches

Michael McIntyre in a scene from his TV series Michael McIntyre's Comedy Roadshow.

BRITISH comedian is in the country on his Happy and Glorious Tour.

Cliff Richard doesn't need Rod Stewart's help with legal bills

Sir Cliff Richard

"'Don't worry, I'm loaded. I won't keep you to it.' "

Woolies announces closure of Ipswich store

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June