Iconic Australian surfwear company Rip Curl may be up for sale as a wave of difficult trading conditions pummels the surf apparel sector.
The surf and ski wear business, based in Torquay, Victoria, could be put on the market by its owners, according to the Australian Financial Review, which the business could fetch a sale price of between $300-$400 million.
Rip Curl, founded in 1969 by Doug 'Claw' Warbrick and Brian 'Sing Ding' Singer, has reportedly hired Bank of America Merrill Lynch to look into a partial or full sale of the business.
The news comes as rival surf clothing retailer Billabong said this month it had received a second takeover offer, after private equity group TPG's $1.45 a share offer.
Australia's retail and wholesale surf brands have been hit by a downturn in consumer spending, a shift by consumers to purchase goods offshore, as well as the high costs related to producing apparel in recent years.
Revenues at Rip Curl have been hit in recent years, sinking 8 per cent to $362 million in 2011. Profits plummeted by 49 per cent to $7.9 million in the same period.