Billabong chief Laura Inman will step down as part of a deal with a US private equity group to help the troubled retailer refinance its debts.
Billabong has reached a deal with Altamont Capital Partners which will allow it to repay its existing debts.
As part of the deal, Inman will step down after 13 months with the company.
She will be replaced by Scott Olivet, the former chairman and chief executive of sportswear brand Oakley.
Altamont has agreed to provide Billabong with a $US294 million ($A325 million) bridge loan facility and is expected to take a 36 to 40 per cent stake in the company.
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Billabong will also sell its DaKine brand to Altamont for about $A70 million.
The company’s chairman Ian Pollard said the Altamont deal was the best available option for Billabong, which had also been in negotiations with another US private equity firm.
“The board believes that the Altamont consortium’s refinancing, and the changes being announced today, provide the company with a stable platform and the necessary working capital to continue to address the challenges it faces,” he said in a statement.
“We had highlighted the company’s debt issues previously and it was imperative to deliver a refinancing that retained an opportunity for shareholders to participate in the future of the company.”
Billabong shares will resume trading today after being placed in a trading halt at 25 cents on Tuesday.
