Briscoe Group is considering the future of its investment in KMD Brands. Photo: RNZ
Retailer Briscoe Group is thinking about the future of its investment in struggling outdoor goods business KMD Brands.
Briscoes owns nearly 7 percent of KMD shares and revealed its half-year results would be affected by KMD failing to pay an interim dividend.
Last year, Briscoes received $1.4 million in interim dividends from KMD - the owner of outdoor brands Kathmandu, Oboz and Rip Curl.
KMD recently announced its second-half sales were down more than 8 percent from a year ago.
In an interview with RNZ Business, Rod Duke was asked whether it was worth being invested in KMD Brands.
"It's a very good question that we're all in this office pondering over," Duke said.
"We're evaluating that every board meeting, that's a discussion. And you're right, the company [KMD] is performing very poorly."
Duke indicated he would keep a close eye on KMD's performance over the coming period.
"Look, I'm not as close to that business as perhaps I should be. Clearly, there are some issues embedded in that business. I'm not quite sure whether it's their summer time business or their winter time business that's the issue. Maybe it's both."
In a trading update provided in June, KMD said group second half sales were down 8.4 percent, with Kathmandu down by the same amount, Oboz down 21.8 percent and Rip Curl down 5.9 percent.
Briscoes announced record half-year sales on Thursday but said margin pressure was squeezing profits.
