PHILADELPHIA (Reuters) – Apparel maker Quiksilver Inc (ZQK.N) has hired investment bank Peter J. Solomon to help find funding or an investor, sources familiar with the situation said on Wednesday.
Quiksilver, which posted a smaller-than-expected quarterly loss on Wednesday, is seeking to raise funds in Europe or find an investor to buy a stake in the company, the sources said.
Quiksilver was not immediately available to comment. Peter J Solomon said it does not comment on rumors or speculation as a matter of company policy.
As part of its fiscal first-quarter earnings announcement, Quiksilver reiterated that it had been exploring a range of strategic and financing alternatives to improve its liquidity position and capital structure.
It said its European banks had extended the maturity of its line of credit until June 30.
Quiksilver, which began making outdoor sports and surfing apparel in the 1970s, said first-quarter revenue fell about 11 percent as fewer people visited its stores. For the second quarter, the company said it expects revenues to fall by a mid-teens percentage basis.
In January, the retailer announced cost-saving measures, including plans of cutting 200 jobs, to reduce expenses by about $40 million annually in the Americas.
Shares of the company closed at $1.17 Wednesday on the New York Stock Exchange. (For more M&A news and our DealZone blog, go to here) (Reporting by Jessica Hall; editing by Jeffrey Benkoe)