Billabong International Ltd, an Australian surfwear company, stated last Tuesday its plans on refinancing instead of letting takeovers take place. It has also ended talks with two possible suitors offering takeover deals. The company has considered discussing refinancing as it was warned that their earlier profit this year will sink below previous guidance.

Among considerations taken by Billabong are its alternative refinancing and asset sale transactions. This was stated with two potential parties who have made previous takeover bids for the company. One of these companies was led by private equity firm Sycamore Partners and US boss, Paul Naude. The other was from Altamont Capital Partners, also a private equity firm and the US clothing group, VF Corp.

Billabong stated that the proceeds they will get from refinancing will be used to give full payment for previous and existing debt facilities. It is also considering to sell West 49, its Canadian retail store.