Launa Inman, the chief executive of embattled surfwear and streetwear retailer Billabong, has backed up her confidence in the turnaround potential of the troubled fashion company with cold hard cash, buying her first parcel of shares since appointed boss earlier this year.
In a statement to the Australian Securities Exchange this morning it was revealed Ms Inman had purchased 59,000 shares in Billabong on October 19 for the total price of $49,610. The average price paid for her stock was 84¢.
According to her directors' interest statement it was the first time Ms Inman had bought Billabong shares since her appointment as CEO in May. Newly appointed director Sally Pitkin has also made her first entry on the Billabong share register since being appointed as a director, buying 70,000 shares at an average price of 82¢ per share.
Earlier this month shares in Billabong fell to an all-time low after the US private equity fund TPG walked away from a $695 million takeover proposal. It was the second private equity firm to quit takeover talks.
TPG's exit placed renewed pressure on boss Ms Inman to implement her restructure plans and rescue the struggling business.
Billabong directors this year rejected an initial takeover offer from TPG of $3 and then $3.30 a share.
Billabong shares crashed more than 18 per cent when the company announced that after nearly two months of due diligence TPG had withdrawn its offer of $1.45 a share, valuing the retailer at just under $700 million.
The stock closed at 83.5¢ on October 12 and last week touched a low of 74.5¢.