Brian Singer, co-founder of Rip Curl, told The Australian that a sale of the surf brand isnt likely to happen. In August, Rip Curl appointed Merrill Lynch to investigate sale options.
“I doubt (the sale) is going to happen,” Singer told The Australian. “The public market looks like a bit of a cesspit at the moment.”
He still predicted the founders would exit “at some point in the next few years.”
The report noted that the deal was probably hurt by the problems facing
Billabong. Like Billabong, Rip Curl is an exporter that has been hit by
the surging
dollar, as well as a cyclical and structural downturn in the retail
industry.
Rip Curl, in comparison, boosted revenue from $362m to
$412m in the June 2012 financial year. Earnings retreated from a
bottom-line profit of $7.9 million in 2011 to a $3.6 million loss last
year. The company said the 2012 result included $4.5m of costs for a restructure that would take place in the current financial year.
