Last summer I asked if Quiksilver was looking to dump Rossignol, the ski company they purchased for a cool $300 mil back in March ‘05. It’s no secret (as not much is with public companies) that Rossignol has been struggling ever since it became a Quiksilver brand as the first year it went from a profitable company to a money-losing company.

Last week Quiksilver president Bernard Mariette was shown the door and troubled Rossignol was cited as one of the main reasons. Mariette was one of the main architects behind the original Rossignol deal and Quiksilver has speculated that he will likely try to acquire the company from them. I’m sure the shareholders are thrilled with that news. Either way, Quiksilver is definitely looking to get rid of Rossignol.

It’s hard to say at this point whether or not Quiksilver will try to remain in the ski game. I can imagine this has left a pretty sour taste in their mouth. If they do they should definitely purchase a smaller ‘core’ ski company that has the same culture as a surf company like QS.

On a side note: Bernard’s getting quite the severance package…

Bernard will receive $106,726 to serve as a consultant for a year. In addition, he will receive severance pay of $2.8 million.

Quiksilver
Rossignol

I’ve been hearing a lot of rumors and speculations lately that Quiksilver is looking to dump Rossignol, the ski company they purchased in March of ‘05 for just over $300 million. That doesn’t really come as much surprise seeing that Rossignol posted their first loss in 15 years under Quiksilver’s management. Not to mention that Rossignol doesn’t fit into the Quiksilver culture either.

In my opinion, this purchase was never going to be a good fit. Like I just mentioned, Rossignol just isn’t a company that fits into the lifestyle culture of Quiksilver. While they actually make some of the best skis out there, the company’s roots are just too deeply tied into ski racing. If Quiksilver wants to get into the ski game they should acquire a smaller company that’s core in the freestyle sector, someone like Line Skis would be perfect.

Although a much smaller company, Line fits perfectly right in with the action sports lifestyle. The company is breed on freestyle and has been a major factor in the innovation of skiing’s comback since the mid ’90s. They’ve been at the forefront with freestyle ski technology and have consistently sponsored and supported some of the sickest athletes in the industry. And although some years their products weren’t exactly the best constructed, that’s something Quiksilver could bring to the table which would help Line to the next level.

It’s obvious Quiksilver didn’t really understand the industry they were getting into. One doesn’t need to look any further for proof than the $4.8 million loss they posted in comparison to $3.7 million in profit the year before. The ski community would’ve responded better to Quiksilver’s entrance into the sport through a core company like Line and Quiksilver’s culture should never include ski racing.

Sources close in the company are saying that three different offers are on the table for Rossignol. They are also independent rumors that they’ll just dump a few of the companies under Rossignol such as Dynastar, Look and Lange. So what do you think? Should Quiksilver dump Rossignol?

Quiksilver
Rossignol