RealSurf Surfers' Forum

I blame Kony, personally.

My point Nick ,is that if you don't 'get it' in any business ya gunna struggle to run it well and the fact that non surfers filled the board seats of Bong when it became listed simply started driving for a 'profit at any cost ' mentality which overlooks the very nature of the industry.
Surfers understand that 70% of the time surfing is in poor to average conditions and time actually spent riding a wave in a one hour session may be only a few minutes. try and tell a tennis player that the court would be only reasonably playable 70% of the time and they would only actually 'play ' tennis for a few minutes for every hour on court. It is an analogy that also transends into the surf industry and is probably pretty unique in that nearly all the success stories in the industry revolve around simple individuals as surfers who grew cottage businesses without fancy education or qualifications.
Enter the likes of Perrin, Kunkel and greedy institutional investors demanding ever increasing profits and that lull in swell, weeks of onshore winds we all expect and cater for, sees a dip in sales and these guys start freakin out.
Do you really think it was all Derek or Gordons fault Bong loaded up on debt for retail stores. The board had to approve all that and I for one would be interested to know what the real driving force was behind decisions like that.
this latest story shows they are really heading for disater if they think they can survive without Gordon,Collette and Naude...jesus if that happens it will be a very interesting Pipe Masters. Laura may even be on the mike and head judge
Billabong founder should be dumped: ASA
Date
October 9, 2012 - 11:49AM
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Colin Kruger
Business Reporter
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Billabong International has appointed former fashion executive Ian Pollard as chairman elect to guide a turnaround, but the embattled surfwear retailer may still find itself short of board members following its shareholder meeting this month with investor advocates recommending that at least two directors be dumped.

The Australian Shareholders Association has recommended that Billabong founder, Gordon Merchant and Colette Paul be dumped for their role in rejecting a $3.30 a share offer from private equity group TPG.
Billabong shares dived last week after the company confirmed that TPG is reconsidering its current $1.45 a share offer.

‘‘In his position as majority shareholder he effectively prevented the Board of Directors accepting an offer of $3.30 per share from TPG Capital in February 2012,’’ said the ASA in a report on its web site. ‘‘Not to sell or refusal to negotiate cost both him and all shareholders very dearly. In his position as a Director, he should have known the perilous financial position the company was in and acted accordingly. His failure to do so no longer gives him the right to continue as a Director.’’

The ASA said Ms Paul acted co-jointly with Mr Merchant.

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The ASA said it also seriously considered whether executive director, Paul Naude, also be dumped.

‘‘This is a borderline decision as we considered that it would not be wise to sack him as a Director along with the previous CEO Derek O'Neill as this would leave too big a gap in the top management of the company’’.

Current Billabong chairman Ted Kunkel, who previously announced plans to step down, presided over a rapid debt-fuelled expansion before the global financial crisis hit. He was chairman when Billabong rejected a higher takeover offer from TPG in February worth $850 million.

Mr Pollard is a past chairman of Just Group, the owner of several youth-oriented fashion retail chains including Just Jeans, Dotti and JayJays. Just has since been taken over by Solomon Lew's Premier Investments.

"Ian will bring a strong mix of commercial and financial expertise to assist with the ongoing transformation of the Billabong business," Mr Kunkel said in a statement.

Billabong has said it is pursuing a four-year overhaul of its business to combat sliding sales and profits.

Mr Pollard will join the board as chairman elect after the annual shareholders' meeting on October 24. He will chair the audit committee on an interim basis with current committee chair and board member Allan McDonald retiring on the same day.

A second private equity firm, Bain Capital, made a matching bid but withdrew its offer in late September while undergoing due diligence.

Mr Kunkel will remain as chairman pending the due diligence outcome and, in the event that Billabong remains a publicly-listed company, will stay until a smooth board transition is assured.

Billabong made a $275.6 million loss in the year to June 30, down from a $119.1 million net profit the previous financial year.

Dr Pollard, a fellow of the Australian Institute of Company Directors, says he is looking forward to working with the board as Billabong rolls out its transformation strategy.

‘‘While the global economic environment remains challenging, the inherent recognition and strength of Billabong’s key brands positions the company well,’’ Dr Pollard said.



Read more: http://www.smh.com.au/business/billabon ... z28llV2eTC

quite a few i.net-bases business in the states suffered the same fate that nick describes -- borrowing way too much to expand. companies that were successful in new york, went to the banks asking for money to expand into one or two more cities. the banks refused to lend a small amount for orderly expansion, insisting they borrow ten or a hundred times that amount and that they expand acrooss the whole country and into europe. next thing you know, they were gone.

Well, that's obviously the banks fault. They can be pretty insistent, lord knows I didn't want to buy a house but they just kept sending me money.

Dunno hollohout, to compare a surf session to a game of tennis is to miss the point of surfing. Its got more in common with fishing and hunting. Thats the romance of the activity.

And Pro fishing is huge. Apparently you can watch it on TV.

Not for me. I fish to kill.

U know it's funny Fong.

I took the kids fishing in a little tidal causeway the other day (secret spot right in the middle of the burbs where if you go the right tide you can catch surprising fish).

Bloke named Steve who helped me get up the carpark after I fin slashed my foot and couldn't walk came down for a fish.

Salt of the Earth bloke.

First thing he asks me after enquiring after the fishing was whether I was watching the comp in France. He really wanted to yak about it.

Just a normal bloke who loves his surfing and fishing and enjoys watching Pro Surfing.

Apparently they do exist.

Beanpole wrote:Dunno hollohout, to compare a surf session to a game of tennis is to miss the point of surfing. Its got more in common with fishing and hunting. Thats the romance of the activity.

good point Bp tho i only used tennis a s one of heaps of activities that people participate and which garner huge following and massive $$$ returns for those companies that are the core foundation suppliers.
So ok take fishing or hunting which are closer to surfing in so much as the effort for return comparison. if a Vc or banker threw $$$at those sports what sort of return would they expect ??
well i don't know but would guess they do not invest in those types of 'low percentage' activities because of the inherent risks.
they also know that well informed mature and long established people have 'control' of those activities.
those 'surfie' idiots, however are just morons who got lucky and we can run rings around them and take the bounty...candy from a kid...or so they think
that is EXACTLY what has gone done and change the subject or dodge the issue as much as you like is just a poor excuse for examining the factual background and a lazy attempt to deny the reality

Hollow

You wouldn't be a compulsive obsessive type of chap?

steve shearer wrote:U know it's funny Fong.

I took the kids fishing in a little tidal causeway the other day (secret spot right in the middle of the burbs where if you go the right tide you can catch surprising fish).

Bloke named Steve who helped me get up the carpark after I fin slashed my foot and couldn't walk came down for a fish.

Salt of the Earth bloke.

First thing he asks me after enquiring after the fishing was whether I was watching the comp in France. He really wanted to yak about it.

Just a normal bloke who loves his surfing and fishing and enjoys watching Pro Surfing.

Apparently they do exist.

I would have to say I dont mind watching a heat occasionally you can get a better appreciation of the way better surfers select and ride their waves that you don't get from the highlights that pop up on the news or in DVD's etc. As for fishing/surfing I am not sure if any of the big lifestyle brands have incorporated the two before but a lot of surfers are into fishing as well.

that's pretty much what happened in the states -- it's called the sub-prime mortage problem.

alakaboo wrote:Well, that's obviously the banks fault. They can be pretty insistent, lord knows I didn't want to buy a house but they just kept sending me money.

"ok take fishing or hunting which are closer to surfing in so much as the effort for return comparison. if a Vc or banker threw $$$at those sports what sort of return would they expect ??''

The professional bass fishing circuit in the US is already massive: high rating TV shows, celeb/star fishers, big endorsements from car makers etcetera.
The top guys earn far more than pro surfers, even Kelly.
Heard the other day that fishing is the world's biggest participation recreational activity.
But it doesn't have that "thing" _ youth, sun, hot bodies, tans, a rebellious, slightly naughty history, which lets the rag trade romanticise surfing.
You wanna dress like a fisho?

Hollowed out wrote:My point Nick ,is that if you don't 'get it' in any business ya gunna struggle to run it well and the fact that non surfers filled the board seats of Bong when it became listed simply started driving for a 'profit at any cost ' mentality which overlooks the very nature of the industry.
Surfers understand that 70% of the time surfing is in poor to average conditions and time actually spent riding a wave in a one hour session may be only a few minutes. try and tell a tennis player that the court would be only reasonably playable 70% of the time and they would only actually 'play ' tennis for a few minutes for every hour on court. It is an analogy that also transends into the surf industry and is probably pretty unique in that nearly all the success stories in the industry revolve around simple individuals as surfers who grew cottage businesses without fancy education or qualifications.
Enter the likes of Perrin, Kunkel and greedy institutional investors demanding ever increasing profits and that lull in swell, weeks of onshore winds we all expect and cater for, sees a dip in sales and these guys start freakin out.
Do you really think it was all Derek or Gordons fault Bong loaded up on debt for retail

Oh I'm not saying Matthew Perrin isn't a cokcsucker...though he's not part of this picture

And I'm not saying the board didn't suck or whatever.

But errr, there were an awful lot of surfers who were pretty happy to take the shares in the float back when.

Profit, growth, greed, that's what that game is all about. You can't be a public company and not be endeavouring to grow and change and get ahead of the competition. Once people start buying bits of your act, they have skin in the game and will demand you don't just ignore their investment.

So there's greedy fcuk wits involved but there's also largely just the normal workings of modern business.

Fong, if the fit and quality (i know some of you will scoff but I reckon bong stuff is made quite well and lasts for ages) is the same I would love it to be buying there gear at half or quarter price

fongss wrote: i sense the surf culture chasin it tail here :?

Well exactly.

In 10 years everyone will be claiming Billabong etc as cool Original Surf. Sorta Harley Davidson style.

TPG have pulled out.

Well unless something drastic happens now the value will tank.With part of the problem (Kunkel) going they should ditch laura, forget the new dude from barginsville becuase they are only there to create a smokescreen and appease institutions.
If they put Gordon in as Chairman, brought back derek, got rid of all the non surfer wankers on the board, I would buy shares based on real people who 'get it' running the show without being dictated to by wankers.
go Greasy, kick em out and call on the mates who you have made very rich to back you

you buying shares should put a rocket under their value.

yes call your mates back it wont be a hollow call.