Rip Curl parent company offloads factory amid review

Rip Curl’s parent company will sell its wetsuit factory in Thailand as part of its ongoing business review, with KMD Brands expecting to raise millions of dollars from the divestment.

In an announcement to the Australian and New Zealand stock exchange on Friday, KMD Brands said production at the factory would wind down over the next 12 months.

The sale is expected to generate net proceeds of between $4.1 million and $5.8 million and unlock about $5 million of working capital.

Torquay-headquartered Rip Curl has owned and operated Onsmooth wetsuit factory since 1989. It became Thailand’s second Certified B Corp facility in 2023.

The review of KMD Brands’ businesses began in May and is examining the group’s capital structure, portfolio configuration and other opportunities to “improve returns for shareholders”.

The company said the day-to-day operation of its businesses – Rip Curl, Kathmandu and Oboz – would continue as usual throughout the review, with customers, suppliers and staff advised not to expect any changes.

In Friday’s market update, KMD Brands said the review was progressing well and was expected to be completed before its 2026 financial results are announced on 23 September.

Direct-to-consumer same store sales, including online sales for Rip Curl, were down 2.8 per cent between 2 February and 19 July this year.

“Rip Curl sales continue to be impacted by subdued customer sentiment and competitor promotional activity,” KMD Brands said.

It said reduced benefits from currency movements had also weighed on fourth-quarter trading.

The review follows KMD Brands’ decision in March to reject a proposal from rival surf brand owner Stokehouse Unlimited to separate Rip Curl before merging it with Stokehouse into a new company.

Brian Singer and Doug Warbrick founded Rip Curl in Torquay in 1969.

KMD Brands acquired Rip Curl from Singer and Warbrick in October 2019 for about $350 million.

KMD Brands has been contacted for comment.