Rossignol in Park City is for sale
Scant snow early last year has Quiksilver, Inc. wanting to sell its Rossignol Group based at the Mountain Center at Kimball Junction.
The announcement came last week as Huntington Beach, Calif.-based Quiksilver reported strong second-quarter financial results for fiscal year 2008. The Quiksilver Rossignol Group owns Rossignol, Dynastar, Lange, Look bindings, Gnu, Lib Technologies and skis, snowboards and bindings by Roxy.
"The Mountain Center is home mainly to Rossignol Group activities and is where we wanted our brands to be anchored right at the foot of the mountain," Rossignol Group North America President Francois Goulet said in a telephone interview Monday. "Quiksilver management gave us the opportunity to relocate here in Utah and build this facility and really change our business model."
Quiksilver purchased the Rossignol Group about three years ago and opened the Mountain Center at 1441 W. Ute Blvd. in 2007.
"It was part of their strategy to open up their business into the outdoor world," Goulet said.
But weak snowfall two winters ago hurt the snow-sports industry, he said.
"There was no snow in Europe, North America and Asia," Goulet said. "It had some impact, obviously, on the financial result of the Rossignol Group. [Quiksilver] decided to look at opportunities to sell the company in January."
There are "many interested parties," he said.
"The process is going according to plan," Goulet said.
Quiksilver classified its Rossignol equipment and apparel business as discontinued operations, resulting in a non-cash pre-tax charge in the second quarter of about $240 million, according to a prepared statement from the company last week.
The charge is not expected to impact Quiksilver’s operations or financial covenants.
"We are pleased with the strong second quarter financial performance delivered by the Quiksilver team," Quiksilver CEO and President Robert B. McKnight Jr. said in a prepared statement. "As we separate the results of the Rossignol Group from those of our continuing core businesses, it becomes increasingly clear that our broadly diversified mix of brands, products, geographies and distribution channels positions us well in challenging economic climates, such as the one we all face today."
Quiksilver net revenues increased 15 percent in the second quarter, which ended April 30.
"Net revenues and income from continuing operations for all periods exclude the results of the Rossignol winter sports equipment and apparel business as well as the golf equipment business which are reported as discontinued operations," documents Quiksilver filed with the Securities and Exchange Commission state.
According to McKnight, "As the boardsport lifestyle continues to expand around the world, our results demonstrate that the quality, style and authenticity of our brands have more influence than ever on the buying decisions of our customers."
Sale of the Rossignol Group wouldn’t likely impact the Mountain Center’s roughly 70 employees, Goulet stressed.
"Nothing is going to happen. Rossignol is a 100-year-old brand and the other brands are 40 to 50 years old," he said. "They’re not going to go away. Most likely, the new owner would take over the operation as it is today."
Shares of Quiksilver, Inc. are traded on the New York Stock Exchange under the ticker symbol ZQK.
The company’s consolidated income from continuing operations jumped from 25 to 30 cents per share in the second quarter, SEC documents state.
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