Think of surf wear, and “Billabong” is often a brand that comes to mind. The company has been making waves in the surfing world since 1973, and is practically an institution when it comes to surf wear. Presently, though, Billabong surf wear future seems uncertain, as shown in these reports from several reputable news firms. Find out what is rocking the heels of this surf-company giant:

“Australian Surfing company Billabong’s financial fortunes have been deteriorating for months, with profits this year forecast to fall by about a half compared with 2011,” says BBC News.

Surf Industry Trade Magazine, Transworld Business reports,

“Following its request yesterday to suspend trading of its stock, Billabong announced today that net profits for its half year ended December 31, 2011 dropped 71.8% from the same period in 2010. While total revenue was up 1.5% to just under $850 million AUD, profits were just under $16.1 million, down from $57 million last year.  Read the entire report here.

“The news comes on the heels of swirling rumors that Billabong CEO Derek O’Neill would be removed from the company’s board of directors, which were denied by Chairman Ted Kunkel, who said ”I categorically deny the suggestion,” according to a Sydney Morning Herald post.

“At this stage we have not offered any comment and are unlikely to say anything until the release of our results tomorrow,” stated Billabong Australia Communications Manager John Mossup via email” reports Transworld Business.

“The firm, which is best know for making surf wear, has been struggling in recent times amid slowing global demand.

Last month, the company warned that its earnings for the first half of the year may dip by as much as 25%.

Billabong’s debt has also been increasing, putting more pressure on its balance sheet.

The company said it will use the proceeds from the partial sale of Nixon, which will help it generate $A265.8m, to ease its debt burden.

“The board considers it needed a certain transaction to address Billabong’s balance sheet issues, in particular to avoid any potential breach of its bank covenants,” Billabong said.”  Read the entire report from the BBC

This decision to sell almost half of Nixon has everyone believing that Billabong’s surfwear future is uncertain. Is this a desperate act to hold on or is it the right move to establish Billabong for the future?  Let us know what you think! For more information on this strategic capital structure, click here.