Better than nothing, though, yes?
Want to talk exquisite timing?
Do you remember, as October opened, when Rip Curl, the last of
the big three to sell, cashed in its chips to New Zealand camping
retailer Kathmandu for $350 million?
The deal ended fifty years of continuous private ownership for a
company founded in Torquay in 1969 by Doug Warbrick and Brian
Singer, two wild gunslingers whose surf DNA allowed Rip Curl to
thrive while Billabong and Quiksilver went public, soared, then
sunk.
Kathmandu’s bullish CEO Xavier Simonet said that, “Rip Curl
transforms Kathmandu into a highly complementary, seasonally
balanced, global outdoor and action sports business. The
combination will support the acceleration of our brands’ global
expansion into new channels and markets. Sharing a focus on
quality, innovation and sustainability, Kathmandu and Rip Curl make
for a great cultural fit.”
What’s that investment worth to Kathmandu now?
Rip Curl stores shuttered, consumer confidence kicked in the
pussy, a world tour the company has dominated for the last decade
(world champs in 2007, 2009, 2013, 2014, 2016, 2017, 2018)
suffering the effects of verdigris as it oxidises on a
billionaire’s desk.
And what’s Kathmandu worth?
Four days ago, it closed all its Australian stores, its New
Zealand online operation and iced four thousand jobs.
It’s share price a few
weeks ago was three bucks forty.
Now, it’s under a
dollar.
(Update: Kathmandu shares have just been in a trading halt
pending a “material
announcement” by Kathmandu. These sorta things happen
when shares are going through the floor and the company wants to
get a little breathing space.)
All of which suggests today’s rumour, which
comes from a source one
might called impeccable, might actually be good news for pro
surfers.
From Wednesday, April 1, all of Rip Curl’s pro surfer salaries
will be slashed by half, with a wait-and-see attitude in place
in case they have to bite off the other chunk.
The surfer affected include Mick Fanning, Gabriel Medina, Owen
Wright, his sis Tyler, Mason Ho, Conner Coffin and the luckless
Bethany Hamilton and tour rookie Morgan Cibillic.
If there’s any sense in that damn company, Mason Ho’s salary, a
pittance of what he’s worth, will remain steady.
“You know where this is going,” the source wrote.
I can guess.
And you?