Outdoor and surf clothing retailer KMD Brands has delayed the release of its half-year financial results, paused share trading, and confirmed it is seeking to raise capital.

The announcements come after KMD Brands rejected a demerger offer from a US-based surf company for its Rip Curl business.

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.

The ASX- and NZX-listed company then imposed a temporary trading pause on its 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 high debts.