Another company has fallen upon hard times as the surf industry struggles to survive in a slowing economy. Billabong is worthless, and has been written down to a book value of zero according to Forbes magazine. Billabong's annual loss was $773 million, while its market capitalization is only $229 million. 

Yes, Billabong lost more than 3 times more than what its worth. How is that even possible? Lackluster sales and failure to differentiate their brand are 2 reasons. I also think sponsoring the Tahiti Pro is great way to burn through tons of cash with minimal returns. Billabong is currently seeking financing from private equity firms, but its more important for them to revitalize their products if they want to survive in the long run.
I feel like I woke up in Bizarro world this week. The Wall Street Journal is reporting that Billabong's ill timed retail outlet expansion in 2010 is straining financials and killing the brand. All this during the same week when Nike release's their Free Run +3 Hurley edition shoes, which sold out in 25 minutes today (don't worry I got a pair). Billabong is no longer a core brand. Nike drops the 6.0 name to sell a co-branded sneaker with a surfing company. Is this the new world order?