Rip Curl is one of the most recognized names in surfing. So when headlines started appearing about massive losses and store closures at its parent company, a reasonable question followed — is the brand actually finished?
The short answer is no. But the longer answer is more complicated. Here is a clear breakdown of what is actually happening, what caused it, and what it means for anyone who buys, sells, or works with Rip Curl.
Rip Curl Is Not Closing — Here Is What Is Actually Happening
Let’s get this out of the way first. Rip Curl is not going out of business. The brand is still designing, manufacturing, and selling wetsuits, boardshorts, surf gear, and related products. It still sponsors athletes and surf competitions. Its website still takes orders.
What is happening is a restructuring at the parent company level. That means selected store closures, cost cuts, and management changes. This is not the same as shutting down a brand entirely.
There is an important distinction worth understanding here. Closing some stores is very different from selling a brand, and both are very different from full liquidation. Right now, Rip Curl falls into the first category — a leaner retail footprint, not a disappearing act.
Think of it like a restaurant chain that closes several underperforming locations but keeps others running and still sells food through delivery platforms. The brand is alive. Some local branches are not.
Who Owns Rip Curl and Why That Matters Right Now
Rip Curl was founded in 1969 in Torquay, Victoria, Australia. It became one of the original “Big Three” surf brands, alongside Quiksilver and Billabong, and built a global reputation over decades of sponsoring elite surfers and major events.
Today, Rip Curl is owned by KMD Brands, a New Zealand-based holding company that also owns outdoor apparel brands Kathmandu and Oboz. That ownership structure matters because problems at the group level flow directly into how Rip Curl operates — how much it can invest, how many stores it maintains, and what strategic decisions get made.
Rip Curl has navigated ownership changes before. Its original founders, Doug Warbrick and Brian Singer, eventually stepped back as the company transitioned through corporate ownership. The brand survived those transitions. The current situation is serious, but it is not unprecedented territory for a company of this age and scale.
The Financial Losses Behind the Headlines
The numbers are genuinely bad. KMD Brands recorded a statutory deficit of approximately NZ$83 million in a recent reporting period — described in coverage as one of the worst results the company has seen in over a decade.
Rip Curl’s own sales fell close to 10%, which translates to roughly $25 million, in the first half of one financial year. That is a significant drop for any retail brand.
KMD Brands’ share price reflected the damage. Shares fell from around $1 to under $0.50 over the course of a year. When a stock loses half its value in twelve months, it signals that investors have serious doubts about the direction of the business.
That said, a large loss does not automatically mean a brand is about to disappear. Many companies have reported losses of this scale and recovered through restructuring. The key question is whether management has a credible plan — and whether they can execute it before the losses compound further.
What Caused the Decline — And What Did Not
Several things contributed to this situation, and it would be inaccurate to point to just one cause.
Post-pandemic retail has been difficult across the board. Inflation changed consumer spending habits. E-commerce competition has squeezed physical store performance in the surf and outdoor apparel sector broadly. Rip Curl is not the only brand in this space dealing with restructuring.
There was also a specific controversy. Rip Curl faced calls for a boycott following a marketing incident described in coverage as a “trans misstep.” That controversy drew attention and criticism.
But here is an important detail: Rip Curl’s sales were already down nearly 10% before the full effect of that boycott could realistically be measured. The decline predated the controversy and extends well beyond it. Treating the boycott as the primary cause misreads the timeline and ignores the broader pressures that were already in place.
The honest picture is that Rip Curl was dealing with a tough retail environment, and the controversy added pressure to a situation that already existed.
The Turnaround Plan KMD Brands Has Put in Place
KMD Brands has announced a formal transformation strategy. The main elements include closing at least 21 stores across its brand portfolio, cutting approximately $25 million in annual costs, and making changes at the executive level.
The logic behind closing underperforming stores is straightforward. Retail space costs money — leases, staff, utilities, inventory. If a location is not generating enough revenue to justify those costs, cutting it improves the overall financial picture. Done correctly, store closures can help a company move from large deficits toward break-even faster than almost any other lever.
The $25 million cost reduction target is meaningful given the scale of the losses. It will not close a $83 million deficit on its own, but it changes the trajectory. Combined with any recovery in sales, it gives the business more room to operate.
Whether this plan succeeds depends on execution. Cost cuts are the easy part to announce. Actually improving brand performance and stopping the sales slide takes longer and involves variables management cannot fully control.
What This Means for Customers, Employees, and Investors
Customers
If a Rip Curl store in your area closes, that is a real inconvenience. But it does not mean you lose access to the brand. Products are still available through Rip Curl’s website and through other retailers that carry the range. Warranties and product lines are not going away because a physical store shuts down.
It is reasonable to wonder whether ongoing support and product availability could be affected if the situation worsened significantly. For now, the brand continues to operate and sell. Keep an eye on whether KMD Brands’ turnaround shows results over the next year or two.
Employees
Store closures mean job losses. That is a direct and serious consequence for the people who work in those locations. Restructuring at this scale rarely happens without a workforce impact, and anyone employed in Rip Curl retail should be paying attention to their specific location’s status.
Investors
KMD Brands’ share price decline is a clear signal that the market has concerns. Investors who held shares at $1 and watched them fall below $0.50 have experienced real losses. Whether the stock recovers depends on whether the turnaround plan produces results — and that will take time to show up in earnings reports.
For a detailed view of how turnarounds like this tend to play out across the retail sector, Bloom Business Mag covers business restructuring, brand strategy, and market performance with the same direct approach.
Is Rip Curl Worth Buying From Right Now?
If you need a wetsuit or surf gear, there is no strong reason to avoid Rip Curl based on current information. The brand is still operating. Products are still available. The business is under pressure, not in collapse.
The situation warrants watching, not panic. If you are making a large purchase with a warranty, it is sensible to buy through a channel — the brand’s own website or a major retailer — that gives you clear recourse if something goes wrong down the line.
The Bottom Line
Rip Curl is not going out of business. What is happening is a genuine financial struggle at the parent company level, with real losses, real store closures, and real consequences for employees and investors.
The brand has a 55-year history, strong recognition in surf culture, and a parent company with an active turnaround plan in place. None of that guarantees success. But it is a very different picture from a brand on the verge of disappearing.
Watch what KMD Brands reports in its next few earnings cycles. If sales stabilize and the cost cuts deliver, the worst may pass. If the losses continue to compound, the situation will need reassessment. For now, Rip Curl is restructuring — not closing.
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