2011 Business Person Hall of Fame

2011 Gold Coast Business Person Hall of Fame inductee

Gordon Merchant

Billabong

GORDON Merchant’s star value may have shifted from him to the near billion-dollar Gold Coast company he founded in 1973 but he is still as active in business today as when he was making board shorts on his kitchen table.

The reclusive Billabong founder, estimated to be worth $717 million, gave a rare interview at the weekend before he was inducted into the Gold Coast Business Hall of Fame at the annual excellence awards.

‘‘I am still on the Billabong board,’’ he said.

‘‘And I stay in constant touch with the company.’’

One of the reasons Mr Merchant is less well known on the Gold Coast today than he was 20 years ago is because of his extensive business interests, which include Victorian food packaging company Plantic Technologies and American surf company US Blanks.

His business commitments require him to split his time between the Gold Coast, Victoria and the Americas.

But Mr Merchant said he enjoyed his life now more than he ever did.

‘‘Life really does not get any better than this,’’ he said.

‘‘It is very satisfying.’’

Despite the fast pace of life, Mr Merchant said he regularly managed time for a surf.

‘‘If I am on the Gold Coast, Greenmount is my favourite spot,’’ he said.

Mr Merchant told the story of how he arrived on the Gold Coast with his ‘‘bum hanging out of his pants’’ and only decided to establish Billabong because he needed to provide for his family.

‘‘I was pretty naive when I started,’’ he said.

‘‘I remember going into the bank to get a loan wearing my boardshorts and they pretty much laughed me out of there.

‘‘So to end up here, getting this award, is quite amazing.’’

Mr Merchant also gave credit to his former wife Rena for inspiring him to launch surf wear production.

‘‘Rena was crocheting bikinis and making board shorts when we met,’’ he said.

‘‘She hung them on the clothes line of our flat in Burleigh and sold them to tourists.’’

Mr Merchant said in the early days of Billabong, a single error would have been enough to send the business broke.

‘‘It has been a struggle,’’ he said. ‘‘We knew that our first mistake was probably going to be our last.’’

Mr Merchant, who still has a 15 per cent stake in Billabong, appeared unconcerned about last week’s massive drop in the company’s share price.

‘‘The share market is like a bunch of startled fish,’’ he said.

‘‘I am confident about the fundamentals of the company.

‘‘But it is going to take a little time for things to improve for Billabong.

‘‘The stock market does not understand that – it is impatient.’’