The owner of two of Australia’s best-known outdoor retail brands, Kathmandu and Rip Curl, is in talks to sell the business to US brand management giant Bluestar Alliance.
New York-based Bluestar Alliance is a global brand management and investment firm that acquires, builds and manages a portfolio of consumer, fashion, lifestyle and retail brands.
Its existing portfolio includes several well-known international names, including streetwear label Off-White, workwear brand Dickies, surfwear brand Hurley and Scotch & Soda.
If completed, the deal would see Kathmandu and Rip Curl join Bluestar’s portfolio, marking a significant ownership change for two brands with deep Australian roots.
The latest development follows a strategic business review launched by KMD in May this year under chair Philip Bowman, when the company engaged advisers including Barclay & Co, Deloitte and Chapman Tripp to examine its capital structure and portfolio value.
It also follows reports in July of growing buyer interest in the business. The Australian reported at the time that KMD was receiving indicative offers for both the entire business and individual brand assets, with Rip Curl attracting the most interest. Billionaire Brett Blundy was also named as a potential suitor.
Kathmandu was founded in Melbourne in 1987 by Jan Cameron and John Pawson, initially opening on Hardware Lane, while Rip Curl was established in Torquay, Victoria, in March 1969, close to the iconic Bells Beach surf break.
Financial struggles for KMD
The potential sale comes as KMD Brands navigates a challenging financial period, with the group reporting a statutory loss of more than $300 million in FY26.
The business has faced differing trading conditions across its two major brands, with Kathmandu showing stronger sales momentum while Rip Curl has contended with softer consumer demand.
In its FY26 trading update, KMD forecast group sales of between $863.2 million and $866.5 million, representing growth of around five per cent on the previous year. Underlying EBITDA was expected to more than double to between $31.5 million and $34 million.
Kathmandu continued to outperform in the second half, with direct-to-consumer same-store sales, including online, rising 4.8 per cent in the 24 weeks to July 19.
Demand for rainwear, fleece and base layers remained strong, although insulated product sales were affected by an unseasonably warm winter across Australia’s east coast. New Zealand trading also outperformed Australia.
Rip Curl, meanwhile, recorded a 2.8 per cent decline in same-store sales, reflecting weaker consumer demand, increased promotional activity and a smaller benefit from favourable foreign exchange movements.
Founded in 2006 by Joseph Gabbay and Ralph Gindi, Bluestar Alliance generates more than US$13 billion (A$18.5 billion) in global retail sales. The company has more than 600 licensees and a network of more than 500 branded retail stores.
B&T has contacted KMD Brands for comment.
