Kathmandu and Rip Curl’s Parent Company to Axe 21 Stores in Desperate $25m Survival Bid
- KMD Brands unveils drastic plan to close dozens of stores in a bid to boost profits and lift its plummeting share price
- The Australian retail giant will launch its ‘Next Level’ transformation strategy to unlock brand value and deliver sustainable growth
- Up to 21 unprofitable stores will be closed down, with a major redesign and digital overhaul set to transform the customer experience
Kathmandu and Rip Curl‘s parent company, KMD Brands, has revealed a drastic plan to axe 21 stores across its network in a desperate bid to boost profits and lift its plummeting share price.
The Australian retail giant will launch its ‘Next Level’ transformation strategy, designed to unlock brand value and deliver sustainable growth, following a difficult last financial year when sales fell by 0.5 per cent across its brands until May 2025.
Brent Scrimshaw, KMD Brands group chief executive and managing director, said the business would focus on a brand and product-led customer-centric growth agenda. “Since joining KMD Brands as Group CEO, I’ve spent time across each of our offices and regions, listening to our teams and retail partners while immersing myself in the business,” he said in a statement to the ASX.
“That’s why we’re launching Next Level – a transformation strategy designed to align the group behind a brand and product-led customer-centric growth agenda. Core to our strategy is a clear integrated marketplace vision for each of our brands that aligns consumer, product and store format in each geography.”
The stock has fallen more than 50 per cent over the last 12 months and is trading at 22 cents. As part of the plan, KMD will not only close down unprofitable stores but also update designs and improve the digital experience for customers.
The group will change the look of stores across its Rip Curl, Kathmandu, and bootmaker Oboz brands. Its Kathmandu brand will launch concept “stores of the future” across Australia and New Zealand before Christmas.
David Kirk, Chairman of KMD Brands, said the company was “materially undervalued” by the market. “Over the last 18 months, we have deliberately made significant executive team changes to enhance the core capabilities of the group,” Mr Kirk said.
“The board is fully aligned behind the Next Level strategy and is confident in the group’s ability to self-fund key initiatives and deliver increasing value for shareholders.”