Seabreeze the Byron Bay based distributor has been dumped by Skullcandy, with Melbourne based distributor Aqipa appointed to handle the brand.
Channel News understands that Seabreeze management are not happy over the decision with questions raised over the margins believed to be up to 40% that the Byron Bay Company were pocketing from selling the US brand.
David Chegwin the CEO of Seabreeze distributor had confirmed to ChannelNews that the business that also distributes Smith Optical glasses and ski wear has lost the business.
Chegwin claims that he is already talking to other audio brands following the loss.
Skullcandy was a major part of the Byron Bay based business that operated out of the local industrial estate.
ChannelNews understands that Seabreeze management are in a fight with the owners of the Skullcandy brand over costs relating to the decision to appoint Aqipa.
Skullcandy is based in Park City, Utah, It was acquired in 2016, by Mill Road Capital for A4289M million making Skullcandy a wholly owned private subsidiary of that company.
Back then ChannelNews speculated as to whether a new distributor would be appointed in the Australian market.
Retailers have told ChannelNews that they “Do not” want to be involved in any ongoing “Fights or discussions” going on between Seabreeze and Skullcandy. 
The business was founded in 2003 and today develops, manufactures, and markets true wireless, wireless, and wired headphones.
Skullcandy claims they are a market share leader in providing affordable, high-quality audio products and focuses on developing bold and creative designs.
Mill Road increased its public shareholdings in Skullcandy as its diligence increasingly revealed the strategic value of owning more shares prior to making a bid to acquire the company.
Mill Road’s large shareholding gave it an economic and voting advantage over other bidders that proved conclusive in acquiring the company.
Mills Road management claim that “As a private company, management and Mill Road have worked together to divest unrelated operations, streamline the cost structure, enhance digital capabilities and return the company to its original roots as an edgy, style-oriented brand with a broad colourful assortment and music focused marketing”.
No reason has been given for the dumping of Seabreeze.
