Kathmandu and Rip Curl's Owner Is in Talks to Sell to a US Buyout Firm

Kathmandu and Rip Curl may be about to change hands, and the buyer this time is American. KMD Brands, the New Zealand-listed parent of both outdoor labels, confirmed it is in talks to sell the business to Bluestar Alliance, the New York brand-management firm that already owns Off-White, Dickies, Hurley, and Scotch & Soda.

Nothing is signed. KMD says only that talks are underway and that the deal, if completed, would move both brands into Bluestar's portfolio; the company has not disclosed a price. But the writing has been on the wall since May, when KMD launched a formal strategic review after a fiscal year that closed with a statutory loss north of $300 million. By July, reports had the company fielding indicative offers, with Rip Curl pulling the stronger interest and retail billionaire Brett Blundy floated as one possible suitor.

Handing both brands to a firm whose whole business model is squeezing value out of logos it didn't build is a telling move for a company that spent years insisting Kathmandu and Rip Curl needed to stay under one roof to share supply chains and retail space. Bluestar doesn't run stores so much as license names, and if this closes, two brands built on actual outdoor credibility join a roster better known for turning streetwear nostalgia into royalty checks.

Source: B&T

Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →