Consac Renews Call for Sale of Quiksilver

Activist investor Ryan Drexler of Consac LLC is making his third push for a sale of Quiksilver Inc. in less than seven months, and this time he’s offering names of potential buyers — Nike Inc. and VF Corp. Consac has increased its holdings in Quiksilver to more than 3.5 million shares, or about 2 percent of those outstanding, from more than 2 million when he first contacted the troubled Huntington Beach, Calif.-based skate- and surf-focused apparel and footwear firm to push for an exploration of a sale in October. But neither last month’s dismissal of Andy Mooney as chief executive officer nor founder Bob McKnight’s return to the firm as chairman have lessened his conviction that the company’s performance is a source of “continuing and profound disappointment” and that a sale process should be effected “before things get worse.” In his view, the situation has deteriorated, with first-quarter adjusted earnings before interest, taxes, depreciation and amortization down 38.6 percent, a drop in the stock of 26 percent from a one-month high in March and, just prior to Mooney’s dismissal and McKnight’s return, the admission of a lack of internal controls that led to a “revenue cutoff” problem and the restatement of prior quarterly

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