Billabong has been handed a lifeline with control of the embattled surfwear company set to be handed to US private equity firm Altamont Partners.
As part of the deal, CEO Launa Inman has stepped down and will be replaced by former Oakley and Nike executive Scott Olivet.
The equity firm will give Billabong a $325-million loan to repay its debts, in return for two positions on the board and up to 15 percent of its shares.
“Essentially Altamont could end up with 40 percent of the company, but the real key to shareholders is it’s still in existence and it’s still running.”
Shares soared after news of the deal broke.
Billabong’s headquarters will remain on the Gold Coast.
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