Close out for Cult Industries

Written on the 5 March 2009

 

SURF label Cult Industries is the latest to be dumped by the global credit tsunami with founder Doug Spong putting the Gold Coast headquarters up for sale.
The brand is reconsolidating in the wake of dwindling national sales and downsizing its operations to include a handful of smaller national retail outlets.
A joint leasing campaign has been launched by PRDColliers and CBRE after the 9357sq m Burleigh property failed to sell last year via an expression of interest campaign.
Mark Witheriff, of CB Richard Ellis, says the company no longer required a distribution centre that forms a major part of the headquarters building.
“The offshore manufacturers who make products for Cult are now shipping those products direct to Cult customers hence the West Burleigh distribution centre has become far too large for Cult’s requirements,” says Witheriff.
The distinctive building, which is split-level and exhibits Balinese influences, includes 3800sqm of free-span warehousing, complete with loading docks. There is also 750sqm of office space, a 700sqm retail area, a 1380sqm manufacturing floor, and parking for 179 cars.
Cult HQ was purpose-built for the eight-year-old company and opened in early 2006.
Spong has been in the surf hardware industry for almost 40 years. His career began in the early 1970s when he started importing a range of handicraft products from Bali and India.
In the late 70s wetsuit manufacturer Rip Curl employed Spong to run a new clothing and accessories division. He soon became an identity in the industry, respected for his ability to design and source products and the Rip Curl label was expanded into the US and Europe.
In 1987 Billabong founder Gordon Merchant offered Spong a licensing agreement to expand the company’s product range and Billabong accessories, such as bags, wallets, wetsuits, sweaters and ski-wear were introduced.
His operating company, Thin Air, was bought out by Billabong in 2000 in the lead-up to the Billabong public float. He quickly bought two small surf-industry labels and went on to group them under the Cult Industries banner.
In the same year (2001), Spong paid $1.21 million for the Cult HQ at 225 Burleigh Connection Road. Ironically, the companies that he helped expand (Billabong; Rip Curl) neighbour the Cult site and are the brand’s main competitors.  

Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter