Kathmandu cuts 34 jobs in restructure

Listed outdoor clothing firm Kathmandu Holdings has made 34 of its New Zealand workers redundant as it cuts costs and prepares a staggered opening of its bricks-and-mortar stores.

The company said Covid-19 and the subsequent closure of its global store network had prompted a restructuring programme across its Kathmandu brand, surfwear business Rip Curl and US footwear business Oboz.

Kathmandu said it was using the Government’s wage subsidies to ‘‘support its employees for as long as possible’’. No further redundancies were planned.

Kathmandu, which has headquarters in Christchurch and Melbourne, has secured more than $3.6 million in wage subsidies for 601 staff members. It also approached shareholders to raise $207m in capital last month.

Chief executive Xavier Simonet told the New Zealand stock exchange yesterday that the store closures were expected to have a significant adverse impact on earnings this year.

However, the company was well capitalised and would continue looking for cost cuts, he said. Its head offices restructure was expected to save $15m annually and the group would continue to access government subsidies, negotiate on rents, and delay or cancel existing inventory where possible, to cater for what was expected to be subdued consumer demand in the medium term.

The company, meanwhile, is planning to open its bricks-andmortar stores in stages, starting with Australia.

Most Kathmandu and Rip Curl stores in New South Wales and Queensland have reopened on a trial basis, with safety protocols in place, and the majority of its Australian stores will reopen by the end of this week.

All but two of its 327 stores internationally were closed by April 1.