Exhibit 99.1

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE


	x
	:	Chapter 11
In re:	:
	:	Case No. 15-11880 (BLS)
QUIKSILVER, INC., et al.,	:
	:	Jointly Administered
Debtors.¹	:
	:
	:
	x

NOTICE OF FILING OF DEBTORS’ MONTHLY OPERATING REPORT

FOR THE PERIOD OF DECEMBER 31, 2015

PLEASE TAKE NOTICE that the above-captioned debtors and debtors in possession (collectively, the “Debtors”) have filed with the United States Bankruptcy Court for the District of Delaware the Debtors’ Monthly Operating Report for the Period of December 31, 2015, attached hereto as Exhibit A (the “Monthly Operating Report”).


Dated:		Wilmington, Delaware
		January 29, 2016

SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP

/s/ Van C. Durrer, II

Van C. Durrer, II (I.D. No. 3827)

Annie Z. Li

300 South Grand Avenue, Suite 3400

Los Angeles, California 90071

Telephone: (213) 687-5000

Fax: (213) 687-5600

- and -

¹	The Debtors and the last four digits of their respective taxpayer identification numbers are as follows:

Quiksilver, Inc. (9426), QS Wholesale, Inc. (8795), DC Direct, Inc. (8364), DC Shoes, Inc. (0965), Fidra, Inc. (8945), Hawk Designs, Inc. (1121), Mt. Waimea, Inc. (5846), Q.S. Optics, Inc. (2493), QS Retail, Inc. (0505), Quiksilver Entertainment, Inc. (9667), and Quiksilver Wetsuits, Inc. (9599). The address of the Debtors’ corporate headquarters is 5600 Argosy Circle, Huntington Beach, California 92649.

Docket #0743

Date Filed: 1/29/2016

Mark S. Chehi, Esq. (I.D. No. 2855)

One Rodney Square

P.O. Box 636

Wilmington, Delaware 19899-0636

Telephone: (302) 651-3000

Fax: (302) 651-3001

- and -

John K. Lyons

Jessica S. Kumar

155 N. Wacker Dr.

Chicago, Illinois 60606

Telephone: (312) 407-0700

Fax: (312) 407-0411

Counsel for Debtors and Debtors in Possession

EXHIBIT A

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE


In re: Quiksilver, Inc., *et al.*		Case No. 15-11880 (BLS)
Debtors		Reporting Period: *December 1, 2015 to December 31, 2015*

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month.

Submit copy of report to any official committee appointed in the case.


REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached	Affidavit/Supplement Attached
Schedule of Cash Receipts and Disbursements	MOR-1	Yes
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1a	Yes		Declaration Attached
Schedule of Professional Fees Paid	MOR-1b	Yes
Copies of bank statements				Declaration Attached
Cash disbursements journals
Statement of Operations	MOR-2	Yes
Balance Sheet	MOR-3	Yes
Status of Postpetition Taxes	MOR-4	Yes
Copies of IRS Form 6123 or payment receipt
Copies of tax returns filed during reporting period
Summary of Unpaid Postpetition Debts	MOR-4a	Yes
Listing of aged accounts payable	MOR-4a
Accounts Receivable Reconciliation and Aging	MOR-5	Yes
Debtor Questionnaire	MOR-5a	Yes

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.



Signature of Debtor				Date


Signature of Joint Debtor				Date

/s/ Andrew Bruenjes				1/29/2016
Signature of Authorized Individual*				Date

Andrew Bruenjes				Americas Chief Financial Officer
Printed Name of Authorized Individual				Title of Authorized Individual

*	Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

[1]	The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s taxpayer identification number, are:

Quiksilver, Inc. (9426); QS Wholesale, Inc. (8795); DC Direct, Inc. (8364); DC Shoes, Inc. (0965); Fidra, Inc. (8945); Hawk Designs, Inc. (1121); Mt. Waimea, Inc. (5864); Q.S. Optics, Inc. (2493); QS Retail, Inc. (0505); Quiksilver Entertainment, Inc. (9667); and, Quiksilver Wetsuits, Inc. (9599). The address of the Debtors’ corporate headquarters is 5600 Argosy Circle, Huntington Beach, California 92649. The direct and indirect international subsidiaries of Quiksilver, Inc. are not debtors in these chapter 11 cases.

Case No. 15-11880 (BLS)

Chapter 11

MONTHLY OPERATING REPORT

GENERAL NOTES AND DISCLAIMER

The financial statements and supplemental information contained herein are unaudited, preliminary, and may not comply with generally accepted accounting principles (“GAAP”) in all material respects. In addition, the financial statements and supplemental information contained herein is provided to fulfill the requirements of the Office of the United States Trustee and have been derived from the books and records of the Debtors.

The results of operations contained herein are not necessarily indicative of results that are expected from any other period or for the full year and are not reflective of the results of operations, financial position, and cash flow of the Debtors in the future.

Numerous Debtor subsidiaries had been inactive (the “Inactive Subsidiaries”) prior to the Petition Date, and continued to be inactive during the reporting period covered herein. Where applicable, the Inactive Subsidiaries are shown in the overall consolidation of the Debtor entities.

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver Inc., et. al.

Debtors-in Possession

MOR-1

Consolidating Schedule of Receipts and Disbursements

for December 1 to December 31, 2015


In U.S. Dollars	D.C. Shoes, Inc.		QS Retail, Inc.		QS Wholesale, Inc.			Quiksilver, Inc.			Hawk Designs, Inc.		D.C. Direct, Inc.		Fidra, Inc.		Mt. Waimea, Inc.		Q.S. Optics, Inc.		Quiksilver Entertainment, Inc.		Quiksilver Wetsuits, Inc.		Consolidated Filing Debtor Entities
Beginning Cash Balance	$	2,284,294	$	1,200,390	$	2,331,609		$	10,303,244		$	—	$	—	$	—	$	—	$	—	$	—	$	—		16,119,537

Total Cash Receipts		7,449,549		14,419,429		13,846,624			—			—		—		—		—		—		—		—		35,715,602

Operating Disbursements
Merchandise		5,174,639		—		14,846,248			—			—		—		—		—		—		—		—		20,020,887
Leases, Rent, & Utilities		32,380		1,777,268		595,647			2,067			—		—		—		—		—		—		—		2,407,363
Payroll & Related/Benefits		—		2,292,848		2,847,749			517,352			—		—		—		—		—		—		—		5,657,949
Freight/Customs		379,836		18,222		3,368,476			8,201			—		—		—		—		—		—		—		3,774,736
Taxes		25,410		1,090,231		59,239			57,740			—		—		—		—		—		—		—		1,232,620
Outside Sales Reps/Contractors		63,838		10,044		226,426			—			—		—		—		—		—		—		—		300,308
Insurance, Marketing, & Legal		584,103		78,260		643,520			1,652,041			—		—		—		—		—		—		—		2,957,923
Other		32,811		402,780		1,270,579			1,162,930			—		—		—		—		—		—		—		2,869,100

Total Operating Disbursements		6,293,018		5,669,653		23,857,884			3,400,332			—		—		—		—		—		—		—		39,220,887

Non-Operating Disbursements
Professional Fees & Expenses		—		493,798		—			8,563,298			—		—		—		—		—		—		—		9,057,096
U.S. Trustee Fees		—		—		58,675			—			—		—		—		—		—		—		—		58,675
DIP Interest and Fees		—		—		33,655			—			—		—		—		—		—		—		—		33,655

Total Non-Operating Disbursements		—		493,798		92,330			8,563,298			—		—		—		—		—		—		—		9,149,426

Total Disbursements		6,293,018		6,163,451		23,950,214			11,963,630			—		—		—		—		—		—		—		48,370,313

Net Cash Flow		1,156,530		8,255,977		(10,103,589	)		(11,963,630	)		—		—		—		—		—		—		—		(12,654,712	)

																						Beginning Cash Balance				16,119,537

																								Net Cash Flow		(12,654,712	)

																				December Change in DIP ABL Balance:						—
																				December Change in DIP Term Loan Balance:						10,000,000

																						Net Financing Activity				10,000,000

																						Ending Cash Balance				13,464,826

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver Inc., et. al.

Debtors-in-Possession

MOR - 1a

Bank Account Summary

for December 1, 2015 to December 31, 2015

Bank

Account Type

Entity

Bank Account #
(last four digits)

GL Account #

Bank Balance [1]

Ledger Balance [1]

Reconciled (Yes / No)

Account Opened During
Reporting Period

Bank of America

Receipts

DC Shoes, Inc.

x5130

101000-1

665,531

665,235

Yes

Bank of America

Check Disbursements

DC Shoes, Inc.

x5316

101030-1

286,307

(11,153

)

Yes

Bank of America

Wiring

DC Shoes, Inc.

x7221

101010-1

215,152

n/a

Bank of America

Receipts

QS Retail, Inc.

x5074

101000-1

388,275

910,462

Yes

Bank of America

Wiring

QS Retail, Inc.

x7207

101010-1

101,247

101,446

Yes

Bank of America

Payroll

QS Retail, Inc.

x5079

101020-1

351,662

276,452

Yes

Bank of America

Check Disbursements

QS Retail, Inc.

x5340

101030-1

214,366

(11,414

)

Yes

First Hawaiian

Deposits

QS Retail, Inc.

x5312

101040-1

85,631

114,764

Yes

Bank of America

Receipts

QS Wholesale, Inc.

x5050

101000-1

261,816

425,712

Yes

Bank of America

Wiring

QS Wholesale, Inc.

x7202

101010-1

1,790,769

Yes

Bank of America

Payroll

QS Wholesale, Inc.

x5055

101020-1

212,051

195,469

Yes

Bank of America

Check Disbursements

QS Wholesale, Inc.

x5308

101030-1

230,695

(338,293

)

Yes

Bank of America

Operating

Quiksilver, Inc.

x7023

101010-1

9,904,589

9,672,052

Yes

Bank of America

Payroll

Quiksilver, Inc.

x5017

101020-1

43,889

55,565

Yes

Bank of America

Check Disbursements

Quiksilver, Inc.

x5290

101030-1

636,590

(958,187

)

Yes

Merrill Lynch

Investment

Quiksilver, Inc.

x7H96

101055

156,648

Yes

Bank of America

Utility Deposit

Quiksilver, Inc.

x0661

100050

125,048

Yes

Total Account Cash

15,670,266

13,385,726

N/A

Store Cash

100000

79,100

Total Cash

15,749,366

13,464,826

[1]	Timing differences between bank and ledger balances are due to i) outstanding checks not yet funded at 12/31 and ii) deposits-in-transit as of 12/31.

[2]	Bank statements will be made available upon request.

“I attest that each of the Debtors’ cash accounts has been reconciled to monthly bank statements.”

/s/ Andrew Bruenjes

Andrew Bruenjes

Chief Financial Officer

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 1b

Schedule of Professional Fees and Expenses Paid

for December 1, 2015 to December 31, 2015


			Amounts Paid
Payee	Payor		Fees		Expenses
Restructuring Professionals
FTI Consulting, Inc.		Quiksilver, Inc.	$	1,812,113	$	227,905
Skadden, Arps, Slate, Meagher & Flom LLP		Quiksilver, Inc.		1,319,419		113,228
Kurtzman Carson Consultants LLC				—		—
Peter J. Solomon Company, L.P.		Quiksilver, Inc.		1,479,808		99,416
ICR, LLC				—		—
Pachulski Stang Ziehl & Jones LLP				—		—
Deloitte & Touche LLP				—		—
Deloitte Tax LLP				—		—
A&G Realty Partners, LLC				—		—
Akin Gump Strauss Hauer & Feld LLP		Quiksilver, Inc.		954,316		57,588
Pepper Hamilton LLP		Quiksilver, Inc.		102,305		9,102
PJT Partners Inc.		Quiksilver, Inc.		—		—
Cooley LLP		Quiksilver, Inc.		201,610		—
Province, Inc.		Quiksilver, Inc.		114,597		—
Bayard, P.A.		Quiksilver, Inc.		30,158		—
Houlihan Lokey, Inc.		Quiksilver, Inc.		600,000		20,980
Kirkland & Ellis LLP		Quiksilver, Inc.		1,359,481		61,272
Hilco Real Estate LLC		QS Retail, Inc.		493,798		—

Total Restructuring Professional Fees and Expenses			$	8,467,605	$	589,491

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 2

Consolidating Statement of Operations

For December 1, 2015 to December 31, 2015


In U.S. Dollars	DC Shoes, Inc.			QS Retail, Inc.			QS Wholesale, Inc.			Quiksilver, Inc.			Hawk Designs, Inc.		DC Direct, Inc.		Fidra, Inc.		Mt. Waimea, Inc.		Q.S. Optics, Inc.		Quiksilver Entertainment, Inc.		Quiksilver Wetsuits, Inc.		Consolidated Filing Debtor Entities
Net Sales		6,590,413			14,373,172			9,035,527			38,750			—		—		—		—		—		—		—		30,037,861

Total Cost of Goods Sold		3,816,609			7,997,937			7,322,302			—			—		—		—		—		—		—		—		19,136,847

Gross Profit / (Loss)		2,773,804			6,375,235			1,713,225			38,750			—		—		—		—		—		—		—		10,901,014

Total SG&A Costs		892,887			7,741,488			10,432,467			88,994			—		—		—		—		—		—		—		19,155,836
Asset Impairments		—			—			—			—			—		—		—		—		—		—		—		—
Operating Income / (Loss)		1,880,917			(1,366,253	)		(8,719,242	)		(50,244	)		—		—		—		—		—		—		—		(8,254,822	)

Total Restructuring / Reorganization Expenses		—			4,412,669			5,700,701			—			—		—		—		—		—		—		—		10,113,371

Total Other Expenses		(14,474	)		34,379			919,940			203,569			—		—		—		—		—		—		—		1,143,414

Net Income / (Loss) Before Taxes		1,895,392			(5,813,302	)		(15,339,883	)		(253,813	)		—														(19,511,606	)

Income Tax (Benefit) / Expense		6,674			—			—			—			—		—		—		—		—		—		—		6,674

Net Income / (Loss)		1,888,718			(5,813,302	)		(15,339,883	)		(253,813	)		—		—		—		—		—		—		—		(19,518,281	)

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 3

Consolidating Balance Sheet

as of December 31, 2015


In U.S. Dollars	DC Shoes, Inc.			QS Retail, Inc.			QS Wholesale, Inc.			Quiksilver, Inc.			Hawk Designs, Inc.		DC Direct, Inc.		Fidra, Inc.		Mt. Waimea, Inc.		Q.S. Optics, Inc.		Quiksilver Entertainment, Inc.		Quiksilver Wetsuits, Inc.		Consolidated Filing Debtor Entities
Cash & Cash Equivalents	$	869,234		$	1,470,809		$	2,073,657		$	9,051,126		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	13,464,826
Accounts Receivable		21,210,869			1,251,217			31,999,581			—			—		—		—		—		—		—		—		54,461,667
Other Receivables		278,910			489,612			4,893,263			(4,446	)		—		—		—		—		—		—		—		5,657,339
Inventory		11,763,931			35,586,542			45,446,593			—			—		—		—		—		—		—		—		92,797,066
Prepaid Expenses & Other Current Assets		2,994,005			3,122,465			6,496,037			3,290,664			—		—		—		—		—		—		—		15,903,172

Total Current Assets		37,116,949			41,920,645			90,909,132			12,337,344			—		—		—		—		—		—		—		182,284,070

Property, Plant & Equipment, Net		186,889			11,204,931			25,485,231			17,651,663			—		—		—		—		—		—		—		54,528,715
Trademarks & Other Intangible Assets, Net		982,823			—			43,077,121			9,637,832			—		—		—		—		—		—		—		53,697,776
Goodwill		—			—			—			—			—		—		—		—		—		—		—		—
Investment in Subsidiaries		—			—			—			—			—		—		—		—		—		—		—		—
Deferred Tax Assets - Long-Term		—			—			—			(76,690	)		—		—		—		—		—		—		—		(76,690	)
Deposits & Other Long-Term Assets		183,747			203,128			1,566,102			30,829			—		—		—		—		—		—		—		1,983,805

Total Long Term & Other Assets		1,353,459			11,408,059			70,128,453			27,243,634			—		—		—		—		—		—		—		110,133,606

TOTAL ASSETS		38,470,409			53,328,704			161,037,585			39,580,978			—		—		—		—		—		—		—		292,417,676

Liabilities Not Subject to Compromise
DIP Loan Balance - Revolving Credit Facility		—			—			—			—			—		—		—		—		—		—		—		—
DIP Loan Balance - Term Loan		—			—			90,000,000			—			—		—		—		—		—		—		—		90,000,000
Accounts Payable		16,801,572			2,842,799			39,113,644			1,537,995			—		—		—		—		—		—		—		60,296,011
Accrued Liabilities		961,665			9,318,702			17,552,098			1,233,761			—		—		—		—		—		—		—		29,066,227
Income Taxes Payable		(297,901	)		12,359			263,641			201,265			—		—		—		—		—		—		—		179,363
Intercompany, Net		—			—			—			—			—		—		—		—		—		—		—		—
Deferred Tax Liabilities		—			—			—			21,802,511			—		—		—		—		—		—		—		21,802,511
Other Long-Term Liabilities		654,762			(3,150,358	)		5,040,734			—			—		—		—		—		—		—		—		2,545,138

Total Liabilities Not Subject to Compromise		18,120,098			9,023,503			151,970,117			24,775,532			—														203,889,250

Total Liabilities Subject to Compromise		(58,892,223	)		11,092,086			30,728,011			558,735,972			—		—		—		—		—		—		—		541,663,846

TOTAL LIABILITIES		(40,772,125	)		20,115,589			182,698,128			583,511,504			—														745,553,096

Total Equity / (Deficit)		79,242,534			33,213,115			(21,660,544	)		(543,930,526	)		—														(453,135,421	)

TOTAL LIABILITIES AND EQUITY		38,470,409			53,328,704			161,037,585			39,580,978			—		—		—		—		—		—		—		292,417,676

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 4

Consolidated Status of Postpetition Taxes

For December 1, 2015 to December 31, 2015


In U.S. Dollars	Beginning Tax Liability			Amount Withheld or Accrued		Amount Paid			Date Paid	Check No. or EFT	Ending Tax Liability
Federal
Withholding	$	—		$	622,999	$	(622,999	)	Various	Various	$	—
FICA - Employee		—			331,817		(331,817	)	Various	Various		—
FICA - Employer		—			324,285		(324,285	)	Various	Various		—
Unemployment		—			3,351		(3,351	)	Various	Various		—
Income		—			—				N/A	N/A		—

Total Federal Taxes		—			1,282,452		(1,282,452	)				—

State and Local
Withholding		—			218,838		(218,838	)	Various	Various		—
Sales & Use Tax		871,954			943,560		(815,761	)	Various	Various		999,753
Excise		(5,631	)		11,625		(3,886	)	Various	Various		2,108
Unemployment		—			28,555		(28,555	)	Various	Various		—
Real Property		(30,630	)		63,333		(203,411	)	Various	Various		(170,708	)
Personal Property		22,872			50,791		(24,294	)	Various	Various		49,370
Income		11,500			11,500		—		N/A	N/A		23,000
Other: Business License		7,778			8,417		(5,558	)	Various	Various		10,637
Other: Annual Reports		(1,034	)		2,881		(1,657	)	Various	Various		190
Other: DE Franchise Tax		15,083			15,083		(36,540	)	N/A	N/A		(6,374	)
Other: Tax Audit Payments [1]		232,453			25,000		(110,768	)	N/A	N/A		146,685

Total State and Local [2]		1,124,346			1,379,583		(1,449,269	)				1,054,661

Total Taxes [2]	$	1,124,346		$	2,662,036	$	(2,731,721	)			$	1,054,661

[1]	Represents liabilities related to normal course tax audits.

[2]	The Debtors routinely file tax returns with applicable taxing authorities. Such tax returns are not attached due to their volume, and are available upon request.

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 4a

Consolidated Summary of Unpaid Postpetition Debts

as of December 31, 2015


	In U.S. Dollars
	Current		1-30		31-60		61-90		Over 90			Total
Accounts Payable, Trade [1]	$	17,632,556	$	6,522,941	$	643,439	$	991,781	$	(141,988	)	$	25,648,730
Inventory Received Not Vouchered [2]		13,965,058											13,965,058
Accounts Payable, Manual [3]		20,682,223											20,682,223

	$	52,279,837	$	6,522,941	$	643,439	$	991,781	$	(141,988	)	$	60,296,011

[1]	Accounts Payable, Trade is aged relative to payment terms in effect as of the Petition Date. Actual payment terms for most of the Debtor’ critical vendors have, however, been extended beyond Petition Date terms (to net 75 days) pursuant to trade agreements executed after the Petition Date.

[2]	Represents the value of inventory received from various suppliers, for which a related invoice had not been received by the Debtors, as of period-end.

[3]	Primarily represents period-end accruals for goods in transit.

Case No. 15-11880 (BLS)

Chapter 11

Quiksilver, Inc., et al.

Debtors-in-Possession

MOR - 5

Consolidated Summary of Accounts Receivable

as of December 31, 2015


	Number of Days Outstanding
In U.S. Dollars	Current			1-30		31-60		61-90		>90		Total
Trade Receivables	$	33,706,526		$	11,747,355	$	2,705,344	$	2,838,293	$	8,825,384	$	59,822,902
Allowance for Bad Debts		(5,361,234	)										(5,361,234	)

												$	54,461,667

Case No. 15-11880 (BLS)

Chapter 11

Debtors-in-Possession

MOR-5a

Debtors’ Questionnaire

for December 1, 2015 to December 31, 2015


	Yes	No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X

2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X

3. Have all postpetition tax returns been timely filed? If no, provide an explanation below.	X

4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.	X

5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened accounts(s). If an investment account has been opened, provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X

QUIKSILVER INC 8-K