KMD Brands to close 21 stores in $25m cost-saving strategy

KMD owns well-known brands including Kathmandu, Rip Curl and shoe brand Oboz. Photo / RNZ, Nate McKinnon

Outdoor goods retailer KMD Brands is planning a major shake-up of the business as it looks to turn around struggling sales.

The company owns well-known brands including Kathmandu, Rip Curl and shoe brand Oboz.

KMD said its strategy included a minimum $25 million in cost savings, an organisational restructure that has already begun and a review of its store network.

The company had identified 21 stores for closure in its network of more than 300 globally.

“Since joining KMD Brands as group CEO, I’ve spent time across each of our offices and regions, listening to our teams and retail partners whilst immersing myself in the business,” new chief executive Brent Scrimshaw said.

“What I’ve seen is clear: the potential of our brands is far greater than what we’re delivering today.”

The plan, dubbed “Next Level”, would be carried out over the coming years.

“Core to our strategy is a clear, integrated marketplace vision for each of our brands that aligns consumer, product and store format in each geography,” Scrimshaw said.

KMD chairman David Kirk said the board was “fully aligned” with the new strategy.

“We believe KMD Brands is materially undervalued by the market,” Kirk said. “Over the last 18 months we have deliberately made significant executive team changes to enhance the core capabilities of the group.”

The company has struggled in recent years amid a wider downturn in the retail sector. It posted an interim loss of more than $20m in March and a full-year loss of nearly $50m last year.

KMD was scheduled to announce its 2025 results on September 24.

– RNZ