Rip Curl Acquisition Bid Rejected: Stokehouse’s Offer Denied by Kathmandu

A buyout proposal for Rip Curl, the Australian surfwear brand, was rejected Tuesday by its parent company, KMD Brands, according to reports from the Australian Financial Review and surf industry publication Shop Eat Surf.

The offer came from Stokehouse, a vehicle run by Paul Naude, the former president of Billabong and founder of Vissla, Sisstr and Amuse Society. Naude reportedly saw an opportunity to acquire Rip Curl amid what he described as a period of drift within the surf industry.

“In the last 10 or 12 years, the surf industry has been somewhat adrift, as many of the major brands have been controlled and run by people outside of the sector,” Naude stated, according to the Australian Financial Review. “The industry as a whole has suffered from a lack of a leading company with the scale, authenticity, and commitment needed to surf culture.”

KMD Brands, which as well owns Kathmandu and Oboz, has seen its stock value decline between 46% and 50%, according to Shop Eat Surf. Despite this, David Kirk, chairman of KMD Brands, indicated the company intends to proceed with a restructuring strategy rather than selling Rip Curl to Stokehouse.

“The proposal from Stokehouse does not deliver value for shareholders and presents execution challenges,” Kirk said in a statement released by KMD Brands. “the combination of several directly competing surf brands is not a strategy that has proven effective. We remain focused on executing the Next Level strategy, which is already gaining momentum.”

KMD Brands has engaged Goldman Sachs to advise on treasury and capital management as it works to refinance its long-term credit lines, Shop Eat Surf reported.

Rip Curl generated annual revenue of US$322.8 million for the fiscal year ending July 31, 2025, making it KMD Brands’ largest brand, according to Shop Eat Surf. This substantial revenue stream likely factored into the decision to reject the buyout offer.

Naude, who grew up surfing in Durban, South Africa, and later competed professionally on the North Shore of Hawaii, founded ZigZag magazine and held a regional license for Gotcha before joining Billabong. He launched Stokehouse, and subsequently Vissla, after Billabong went public and faced industry challenges in the early 2000s, with a focus on remaining dedicated to surf culture, according to Hawaiian South Shore.