KMD Brands

KMD Brands
Formerly	Kathmandu Holdings
Company type	Public
Traded as	NZX: KMD; ASX: KMD
Industry	Retail
Founded	1987 in Christchurch, New Zealand
Founders	Jan Cameron; John Pawson
Headquarters	Christchurch, New Zealand
Area served	New Zealand, Australia, United States, United Kingdom
Key people	Megan Welch (CEO); David Kirk (Chairman)
Products	Outdoor and travel apparel, gear and accessories
Revenue	NZ$923 million (2021)
Net income	NZ$114 million (2021)
Number of employees	1,144 full-time equivalent
Subsidiaries	Kathmandu; Oboz; Rip Curl
Website	www.kmdbrands.com

KMD Brands, formerly Kathmandu Holdings, is a global outdoor, lifestyle and sports company consisting of three brands: Kathmandu, Rip Curl and Oboz. Kathmandu was founded in 1987 in New Zealand and specialises in clothing and equipment for travel and the outdoors. Oboz, part of the group since 2018, is based in North America and designs wilderness footwear. Rip Curl, acquired in 2019, is a global surf brand founded in Bells Beach, Australia in 1969.

History

Kathmandu was founded by John Pawson^[1]^[2]^[3] and Jan Cameron in 1987 following their sale of the ALP Sports Clothing label. The company set up its first retail outlets in Australia, whilst manufacturing most of its original clothing range in New Zealand. Bernard Wicht, owner of Alpine Accoutrements, had been the main manufacturer for ALP Sports but continued to manufacture for Kathmandu and also partnered with Penny Hazard to set up the Bivouac chain of stores in New Zealand. In 1992 Kathmandu, having established a strong operation in Australia (with stores in Sydney, Melbourne, Brisbane and Canberra) re-entered the New Zealand retail marketplace, purchasing Alps Sports from its receivers and brought in Bernard Wicht to join John Pawson and Jan Cameron as a third shareholder.^{[citation needed]}

In 2006, Quadrant Private Equity bought the company for NZ$275 million, after Cameron had previously sold half of her business. Wicht was the owner of both the Fairydown and Macpac brands until 2015.^[4]

Kathmandu was listed on the Australian and New Zealand stock exchanges in November 2009.^[5] From 2017 to 2019, Kathmandu had naming rights for the Coast to Coast race in New Zealand.^[6]^[7]

Kathmandu announced the purchase of Oboz Footwear in March 2018.^[8] Oboz is an outdoor footwear brand based in Montana, U.S.^[9] Its marketing stresses sustainability and product innovation, such as through its support for like Trees for the Future and Small Woods, which both advocate for sustainable forestry.^[10]^[11]

In February 2019, Kathmandu launched a series with National Geographic, called Eco Traveller, which focuses on eco-friendly travel and sustainable tourism. Eco Traveller is hosted by Nick Saxon from National Geographic.^[12]

In October 2019, Kathmandu announced it would buy 100% of Australian surf brand Rip Curl for A$350m.^[13]

In March 2022, Kathmandu Holdings was rebranded KMD Brands.^[14]

Wage subsidy controversy

Like other businesses operating in New Zealand, Kathmandu received sizeable financial support from the New Zealand government in the form of wage subsidies for its employees across New Zealand. This was part of a wider policy of economic stimulus for large and small businesses following the COVID-19 outbreak and the resulting downturn in the economy. As part of this programme, Kathmandu Group received $6.2 million from New Zealand taxpayers in 2020. However, despite subsequently posting a profit of NZ $31.5 million, Kathmandu management refused to repay the funds even though the company had enjoyed a profitable year.^[15] This decision was condemned on both sides of the political spectrum in New Zealand with the two major parties describing it as unfair.^[16] Kathmandu's decision was also labelled as an example of the "waste" and "fraud" in the wage subsidy scheme treasury had earlier warned of.^[15]