Quiksilver in Deal to Enter China

Surf wear maker Quiksilver Inc. said Monday that it has struck a deal with a Hong Kong-based apparel manufacturer and retailer to open stores and distribute products in China.

The first phase of the joint venture with Glorious Sun Enterprises Ltd. calls for opening five to 10 Quiksilver Boardriders Club stores in Shanghai by early next year. Thereafter, the company expects to open additional stores in key markets, such as Hong Kong and Beijing, to prepare for wider distribution of Quiksilver’s products.

Financial details were not disclosed. Glorious Sun already operates 500 stores in China.

“Nearly 50 million Chinese households have access to MTV, and the Internet and satellite television are quickly becoming more and more available,” Chief Executive Robert B. McKnight said. “While the development of the board-riding culture is still in its infancy in this market, indoor snow parks and skate shops are beginning to show up in a number of high-profile locations.”

-- Leslie Earnest