Photo: ASP/ Kirstin
Jeffreys Bay.Australian surf industry company Billabong, considered to be arguably the biggest and most influential surf business in the world, has downgraded one of the ASP’s most prestigious surf contests, the Billabong Pro Jeffreys Bay, down from a World Tour event to a 6-star event.  This change of status further cements what is slowly becoming common knowledge, that Billabong is financially struggling and will likely be sold to new owners soon.

Photo: ASP/ Kirstin
Jeffreys BayThe Billabong Pro J-Bay has been having difficulties for some time now.  Kelly Slater, without question the biggest draw in any contest and surfing’s unofficial ambassador, skipped the event last year to surf unbelievable waves in Fiji while Jeffreys Bay saw poor conditions for the vast majority of the contest.  It’s one of, if not the, coldest breaks on the World Tour.  And now, Billabong is drawing back on the event’s prestige to save money.

Photo: ASP/Cestari
Kelly Slater's last appearance at J-Bay.“The change in event status follows a broader review in which we are seeking to identify cost savings throughout the business,” said Billabong’s public relations department in a statement released to the public.  “By retaining an event at Jeffreys Bay, it now provides two qualifying events back to back in the South African region. The move to an ASP 6-Star also opens the event up to South Africa’s aspiring pro surfers for the first time in 20 years and ensures continuity of the event for the local businesses in Jeffreys Bay.”

Billabong will continue to run three events on the ASP World Tour: The Billabong Pro Rio, Billabong Pro Teahupoo (where the company has an exclusive license with the country of French Polynesia to hold all rights to any contest held in Tahiti), and the Billabong Pipe Masters.  The ASP World Tour, which opens the 2012 season Saturday with the Quiksilver Pro Gold Coast, now has ten events scheduled for the year.  To be forced to drop the status of one of the most prestigious and historic surf contests in the world doesn’t bode well for the surf industry giant.

Recent business news shows further evidence of Billabong’s financial troubles.  Billabong, a public surf company based in the Gold Coast of Australia, had its trading of stocks halted after news came out that the company saw a 78% drop in its value over the past 12 months.  A company called TPG Capital is attempting to take over the company, although the sale is on hold because TPG is trying to lowball the purchase amount.  This could show that TPG knows more than is revealed about Billabong’s financial troubles.

Billabong has had a stranglehold on the surf and action sports industry for years, owning numerous retail locations and buying out smaller actions sports brands every chance they get.  Billabong currently owns Von Zipper, Element, Kustom, Nixon, Xcel, Tigerlily, DaKine, Sector 9, Swell.com, RVCA, Honolua Surf and many more in addition to the original Billabong brand.  Billabong recently sold Nixon to TPG, a likely precursor to a sale of the entire company.