Headlines about an $83 million loss, store closures, and boycott calls have a lot of people asking whether Rip Curl is about to disappear. The short answer is no — but the longer answer is worth understanding, especially if you own their gear or are thinking about buying some.
This article covers who owns Rip Curl, what the financial losses actually mean, which stores are closing and why, and what the brand’s near-term outlook looks like.
Rip Curl Is Not Closing — But It Is Restructuring
Let’s get the main question out of the way: Rip Curl is not going out of business. There is no bankruptcy filing, no liquidation, and no brand shutdown as of current reporting.
What is happening is a restructuring. Rip Curl’s parent company, KMD Brands, has announced store closures and cost cuts. These are turnaround moves, not a wind-down. Closing some stores is not the same as a company ceasing to exist.
This distinction matters. Brands routinely shrink their physical retail footprint while continuing to operate through online channels and wholesale partners. It is a common business adjustment, not a death notice.
Who Owns Rip Curl and How the Business Is Structured
Rip Curl was founded in 1969 in Torquay, Victoria, Australia. It has over 50 years in the surf industry and remains one of the most recognized names in the space.
In 2019, Kathmandu Holdings acquired Rip Curl. The group later rebranded as KMD Brands. KMD Brands is publicly listed on both the New Zealand and Australian stock exchanges, which means its financial results — good and bad — are reported publicly and covered by media.
KMD Brands owns three main brands: Kathmandu, Rip Curl, and Obōz. This is an important detail. When you see group-level financial results reported in the news, those numbers reflect the entire business, not just Rip Curl on its own.
What the Financial Losses Actually Mean
KMD Brands reported a statutory deficit of approximately NZ$83 million — described as the group’s most significant financial downturn in more than a decade. That is a large number, and it is right to take it seriously.
Rip Curl’s sales reportedly fell close to 10 percent, around $25 million, in the first half of one recent financial year. Over the same period, KMD Brands’ share price dropped from roughly NZ$1 to under NZ$0.50.
Those are real problems. But here is what the headlines often miss: this is a group-level result. Attributing the entire $83 million loss solely to Rip Curl, or to any single cause, oversimplifies what is actually going on.
Broader market conditions are doing real damage across the whole apparel sector right now. Weaker consumer spending, inflation, a global shift away from physical retail, and currency pressures are hitting brands across the board — not just Rip Curl.
A Note on the Boycott Narrative
Some media coverage directly links the financial downturn to a controversial marketing campaign involving a transgender athlete. The timeline overlap exists, and it would be wrong to ignore it completely.
However, official company statements point to multiple market headwinds, not a single cause. Treat any reporting that frames this as a simple cause-and-effect story with caution. Real business declines almost never have just one driver.
The Store Closure Plan — What Is Actually Happening
KMD Brands announced it will close at least 21 stores across its portfolio, covering both Kathmandu and Rip Curl locations. The company is targeting approximately $25 million in annual cost reductions as part of a broader transformation strategy.
Executive changes have also been announced alongside the store closures. These moves are consistent with what a struggling but functioning company does when it needs to right-size its operations.
To put this in concrete terms: a surfer living in a city where the local Rip Curl store closes will no longer be able to try on wetsuits in that shop. But they can still order from Rip Curl’s website or visit a surf shop that carries Rip Curl gear. The product does not disappear — the local outlet does.
Closing 21 underperforming stores and cutting $25 million in overhead is a classic turnaround move. Companies do this to avoid going out of business, not because they already have.
Are Your Purchases and Warranties Safe?
This is one of the most common practical questions people ask when they hear news like this. The answer is straightforward: as long as Rip Curl is operating, your warranties and customer support remain in place under the brand’s usual terms.
If the specific store where you bought your wetsuit or boardshorts closes, that does not void your warranty. You can typically handle warranty claims through Rip Curl’s website or another company outlet. Store closures change where you seek service — not whether the brand stands behind what you bought.
If you are thinking about buying Rip Curl gear right now, the brand is still operating, still selling products, and still maintaining its product lines. There is no current evidence to suggest your purchase would be stranded without support.
Rip Curl’s Continuing Operations
Despite the financial pressure, Rip Curl continues to design and sell wetsuits, boardshorts, surf accessories, and clothing. It also continues to sponsor professional surfing events and athletes, which signals the brand is not winding down its market presence.
Even with store closures, products remain available through:
- Company-owned stores that stay open
- Rip Curl’s online store
- Independent surf shops and sporting goods retailers that carry the brand
This is how most mid-size apparel brands operate today regardless of how they are doing financially. The shift toward online and wholesale is not unique to Rip Curl — it reflects where retail is heading across the industry.
What the Broader Surfwear Industry Is Dealing With
It is worth zooming out for a moment. Rip Curl is not the only surf and outdoor brand dealing with compressed margins and shifting retail habits.
Across the sector, brands are facing less foot traffic in physical stores, more price-conscious shoppers, and stiffer competition from direct-to-consumer labels. Discretionary spending — the kind that pays for a new wetsuit or a set of boardshorts — is one of the first things consumers cut when money gets tight.
None of this makes Rip Curl’s situation less serious. But it does mean the pressure KMD Brands is experiencing is not a sign that something uniquely wrong is happening to this brand. It is a reflection of conditions affecting the whole category.
How to Read Media Coverage on This Topic
When a headline says something like “surf brand loses $83M after controversial campaign,” it is worth asking a few questions before accepting the framing.
First, is the $83M loss a Rip Curl number or a group number? In this case, it is a group-level figure for KMD Brands, covering all three of its brands across multiple markets.
Second, is there a verified causal link between the stated cause and the financial result, or is the article drawing an inference? Official KMD Brands statements point to a range of market factors. Drawing a straight line from one marketing decision to a multi-million dollar loss in a publicly traded company requires more evidence than most of these articles provide.
For accurate information, go directly to KMD Brands’ earnings releases and official investor communications. Sites like Bloom Business Mag can also help you interpret business news with less noise and more context.
What the Near-Term Outlook Looks Like
KMD Brands is actively pursuing a turnaround strategy. Whether it works depends on whether the cost cuts improve margins, whether consumer spending recovers, and whether the brand can stabilize its sales trajectory.
If the strategy succeeds, Rip Curl continues operating with a leaner retail footprint but a healthier balance sheet. That is the goal of any restructuring.
If results do not improve, further restructuring is possible — including additional store closures, potential brand sales, or other corporate changes. That outcome is not certain or imminent, but it is worth acknowledging as a possibility if you are following this story for investment or business reasons.
What is not on the table based on current evidence is a sudden shutdown or liquidation of the Rip Curl brand.
The Bottom Line
Rip Curl is under real financial pressure. Its parent company, KMD Brands, posted a significant group loss, closed stores, and is cutting costs aggressively. These are serious problems that deserve honest coverage.
But serious problems and going out of business are not the same thing. Rip Curl continues to operate, sell products, and sponsor events. The restructuring it is going through is designed to keep it viable — not to shut it down.
If you own Rip Curl gear, your warranties are not in immediate jeopardy. If you are thinking about buying, the brand is still there. And if you are watching this as a business story, what you are seeing is a mid-size retail brand doing what many others are doing right now: cutting costs, closing underperformers, and trying to survive a tough market.
That is not the same as going out of business. Not even close.
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