Australian surfwear company Billabong has broken off buyout talks with private equity-backed bidding consortiums and issued yet another profit warning.
The company is now negotiating a possible refinancing with the consortiums, which include buyout firm Sycamore Partners and head of Billabong’s US operations Paul Naude and Altamont Capital Partners.
In April Sycamore and Naude offered 60 Australian cents per share, valuing Billabong at A$287m ($300m).
This was significantly below the initial bids of A$1.10 per share made by Sycamore and a rival bidding consortium led by San Francisco-based firm Altamont Capital Partners.
Early in 2013 Altamont and North Face owner VF Corp partnered for an A$556m ($588m) bid for Billabong, matching a rival offer from the Sycamore consortium.
A month later Billabong issued a profit warning, projecting a full year EBITDA of between A$74m and A$85m compared to its previous revised guidance of A$85m to A$92m issued in December.
Meanwhile, in March, Sycamore agreed to buy American teenage clothing retailer Hot Topic for $600m.
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