If you happen to have a gift card for Quiksilver sitting around idle, don’t use it as a tiny surfboard for your fingers anymore: it’s time to redeem it. The company filed for Chapter 11 bankruptcy this week and is closing about 20% of its stores. However, the company received approval for a $175 million loan that will let it stay in business while it restructures.

Confusingly, this bankruptcy only affects Quiksilver USA, and the company’s branches in Europe and Asia/Pacific are doing just fine. The U.S. branch went public on the New York Stock Exchange and went on an acquisitions spree, notably buying up the ski company Rossignol. They now bill themselves as an “action sports company,” but will that action involve selling stuff?

They plan 27 store closings, out of a total 122 stores. These include brands Quiksilver, lady-surfer brand Roxy, and skateboarding brand DC. All of these brands have retail stores as well as discount “factory outlets,” and the company will close some of both store types.

Will the future version of the company accept “old” Quiksilver store gift cards? The company announced that it has asked the bankruptcy court for permission to continue accepting returns on old merchandise and honor gift cards, and news on that should come soon. If you have a chance, though, spend ’em if you got ’em.

If you’re a bargain-hunter, the company is now holding liquidation sales outside of current stores. Maybe “bargain” is the wrong word right now, since Hilco and Gordon Brothers are handling the sale, so you might see some acceptable bargains in a few weeks. There was a weird initial rumor that it would open pop-up liquidation stores in still-empty former RadioShacks, but that turns out not to be true.

​Quiksilver to close 27 stores [L.A. Business Journal]

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