Rip Curl has a storied history in the surf industry, including sponsoring events like the Rip Curl Padang Padang Pro (pictured). Photo: Nathan Lawrence//Rip Curl
Not all the action in the surfing world happens in the water. Sometimes it takes place in the boardroom. This week, the business side of wave riding saw some shake-ups, with the company that owns wetsuit maker Vissla making a bid to buy industry mainstay Rip Curl.
Rip Curl is currently owned by KMD Brands, which also owns Kathmandu and Oboz. The company has been struggling of late, with its stock (traded on the Australian and New Zealand stock exchanges) losing around half of its value over the last year. According to a report by the Australian Financial Review, Stokehouse, the owner of Vissla, Sisstr and Amuse Society, saw this as an opportunity to make a bid for the company.
“The surf industry in the last 10 or 12 years has been somewhat rudderless as many of the major brands have been controlled and steered by non-surf-industry-savvy people,” Stokehouse founder Paul Naude told Shop Eat Surf Outdoor. “The industry has suffered as a whole by there not being a leading company with scale, authenticity and commitment to surf culture. Now that there’s been a significant change in the overall landscape of the industry, I see an opportunity for a lead company with scale to emerge that has a variety of credible authentic brands in their mix.”
In a public statement, KMD confirmed that it had received a bid from Stokehouse and explained why their board of directors is against the attempt.
“The concept proposed by Stokehouse creates no value for shareholders and is challenging from an execution standpoint,” said KMD Chairman David Kirk “In addition, the combination of multiple surf brands that directly compete with each other is not a strategy that has proven effective. Our focus remains on executing the Next Level strategy, which has already gained momentum.”
As of yet, though, a final decision has not been reached.
