NZX giant KMD Brands has delayed the release of its half-year financial results, paused trading, and confirmed attempts to raise capital.

The announcements come after the group rejected a demerger offer from US-based Stokehouse.

Originally scheduled for release today, March 25, KMD said it is “not presently in a position to release its results as intended”. It now expects to release them no later than Friday, (March 27).

The owner of Kathmandu, Rip Curl, and Oboz then announced a temporary pause in trading in their securities, pending a further announcement. 

This further announcement came, where the company revealed that it “is intending to launch a capital raise by way of a placement and AREO (accelerated renounceable entitlement offer) in conjunction with the release of its financial results for the half year.”

On March 16, KMD announced the enlistment of Goldman Sachs to assist in a recapitalisation. The ailing retailer is trying to turn around a long-declining share price and mounting debts.

While the group’s sales grew in its most recent NZX earnings update, KMD’s leadership maintained that it was still at the early stages of a transformation strategy.