Mae Cornes
Quiksilver, Billabong, and Volcom stores once drew crowds across the United States. Now, their shelves are empty, and liquidation sales mark the end of an era. In February 2025, Liberated Brands, the company behind these well-known retailers, filed for Chapter 11 bankruptcy protection. This has sparked discussions on why the company struggled and what steps might have kept it afloat.
What Led to the Collapse?
Liberated Brands faced economic pressures that drained its resources. Inflation drove up costs, supply chain disruptions slowed operations, and customers cut back on spending. Meanwhile, online shopping grew fast, pulling buyers away from physical stores. Other retailers shifted gears, strengthening their digital sales and restructuring operations. Liberated Brands, however, lagged behind, making it difficult to keep up.
Retail analysts point out that e-commerce has been expanding five times faster than traditional retail. Shoppers now expect convenience, and fewer people visit physical stores. Companies that embraced digital tools and lowered expenses stayed ahead. Liberated Brands, unable to adjust quickly, found itself struggling with financial setbacks.
One simple solution that could have helped was to hire a virtual assistant to manage online customer engagement, administrative tasks, and operational inefficiencies. Many modern retailers use virtual assistants to streamline workflows, respond to customer inquiries, and even handle inventory tracking.
Could Outsourcing Have Made a Difference?
Some believe outsourcing could have helped Liberated Brands stay in business. Winston Ong, CEO of BruntWork, argues that handing off certain tasks to external teams might have reduced costs while keeping operations efficient.
“Retailers need flexibility to survive. Outsourcing specific functions allows businesses to control expenses and focus on what matters most,” Ong says.
Research shows that outsourcing can cut operating costs by up to 30%. In an industry where profit margins are often tight, those savings can make a big difference. Outsourcing select tasks can free up resources without losing customer connections.
One area where outsourcing could have helped is social media and online engagement. With more shoppers interacting with brands online, having a strong digital presence is essential. Specialized firms can handle this work, allowing companies to stay visible without increasing internal labor costs. Digital marketing is another function that benefits from outsourcing, as experienced teams can fine-tune advertising strategies to get the best results.
For instance, retailers that outsource Google ads often see better returns on ad spending while minimizing in-house expenses. A dedicated team can continuously optimize campaigns, ensuring they reach the right audience with the highest conversion potential.
Customer service and administrative work are also commonly outsourced. Many retailers use virtual assistants and outsourced customer support teams to handle questions and transactions, keeping costs low while offering 24/7 service.
The Pros and Cons of Outsourcing
While outsourcing can ease financial strain, it comes with risks. Companies need to choose partners that reflect their values and meet quality standards. A poorly managed outsourcing plan can lead to inconsistent service, which may weaken customer trust. Some businesses hesitate to outsource because they want direct control over essential operations.
Opponents argue that relying too much on outside providers could make a brand feel less personal. A generic approach to customer service or social media may weaken a company’s identity. For example, hiring a social media virtual assistant without clear brand guidelines could result in messaging that feels disconnected from a retailer’s core audience. To avoid this, businesses should work with outsourcing teams that understand their values and keep customer-facing roles authentic.
Retailers Must Stay Flexible
Liberated Brands’ bankruptcy serves as a lesson on the importance of adaptability. The company struggled to respond to economic changes and changing customer behavior, which led to its downfall. However, its missteps provide insight for retailers looking to avoid a similar fate.
“Outsourcing creates a business model that can adjust to new conditions without sacrificing long-term success,” Ong explains.
Retailers that combine outsourcing with other smart business strategies stand a better chance of thriving in today’s digital-driven economy. While outsourcing alone wouldn’t have guaranteed Liberated Brands’ survival, a stronger plan for managing expenses and embracing digital trends might have led to a different outcome.