Aussie Kieren Perrow wins Billabong Pipe Masters in North Shore, Oahu.

Just off the high-voltage surfing competition finale of the Billabong Pipe Masters in Oahu earlier this month, the reality of the Aussie surf brand faced a huge obstacle on Monday, December 19, 2011 when is closed 44% lower, closing at A$2.03 a share an all-time record low for the brand.

Quickly it was announced, according to the that a strategic capital structure review is under way with Goldman Sachs as an adviser.

In statement from Billabong, they said, “This review includes an assessment of all potential alternatives to strengthen the company’s capital structure in light of the existing operating environment and the risk for further deterioration.

“The review encompasses all of the Company’s balance sheet alternatives. It would be premature to speculate on the most likely outcome of this review and, while nothing has been ruled out, raising equity is not the preferred path at this time as the Company is reviewing other options.”

Billabong’s low report was due to softer than expected sales during the holiday season—something many brands, especially in action sports, are dealing with in today’s harsh economic climate.

Goldman Sachs sent clients an email advising a temporary suspension of its investment recommendation in Billabong. Speculations include that the strategic review may include investors or buyouts such as Nike or VF Corporation.

Stay tuned for more as news comes in.