THE market turbulence surrounding Billabong may have subsided. Beneath the surface, however, a serious shake-up is under way at the Burleigh Heads-based head office, which includes a big cut in spending.
While the announcement may have washed over the business world, professional surfing has been rocked by the recent announcement from Billabong that it has downgraded prize money at its annual contest at Jeffreys Bay, South Africa. The decision, described as the equivalent of removing Wimbledon from the world tennis circuit, has removed a key event of the world professional tour, which now has been reduced to 10 events. But it is a decision that has far greater significance for Billabong.
The decision to downgrade the event has been interpreted as a signal that not only is Merchant back in control, but he is deadly serious about resurrecting the company's fortunes. http://www.brisbanetimes.com.au/business/billabong-making-waves-20120314-1v3f1.html
BBG Price at posting:
$2.29 Sentiment: LT Buy Disclosure: Held
