Surfers left high and dry in wipeout

A MULTIMILLION-dollar Gold Coast surf brand has dumped its team of sponsored surfers to cut costs, raising fears about the company's future. Burleigh-based Cult Industries, run by flamboyant surf industry millionaire Doug Spong, has axed more than 30 team riders including some of the Gold Coast's most talented surfers, leaving their 2007 season in tatters.

Former world No.23 Beau Emerton, who has been the face of Cult since it launched five years ago, said the decision was a 'kick in the guts' that could end his career.

Also left out in the cold was Queensland's Dave Reardon-Smith, who was sent packing despite winning the 2006 state title. To rub salt in the wound, Reardon-Smith said he received the bad news in an email and Cult bosses then refused a face-to-face meeting.

Burleigh's Jay 'Bottle' Thompson, Miami young gun Nick Chalmers and talented Currumbin surfer Jenna Agius were among the other Gold Coast surfers whose contracts were not renewed.

Emerton, 31, said he received the demoralising news just days before Christmas.

"I just got back from Hawaii and I had a meeting with Doug and he told me the company was taking a different direction and didn't need me any more," he said.

"It came right out of the blue.

"It was really disappointing, especially right before Christmas. It's definitely a hard kick in the guts."

The heads rolled despite the fact Mr Spong had built Cult Industries into an operation with outlets in 26 countries and sales believed to be worth hundreds of millions of dollars a year. Actual figures are not available as the company is not publicly listed.

Surf industry sources yesterday said Cult had been locked in a battle with surfwear giants Billabong and Quiksilver, and the company was left out of pocket by the demise of Gold Coast surf label Brothers Neilsen.

But Mr Spong told The Gold Coast Bulletin there was 'no way' Cult was in financial trouble.

"Absolutely not. We've still got money, there's no issue," he said.

Instead, Mr Spong said the surf label was 'regrouping' and reviewing the amount it spent on sponsorships.

"Our riders cost a considerable amount. You've got to bite the bullet sometimes and look at getting the best bang for your buck," he said.

Cult is said to be considering one option that involves sponsoring bands.

Mr Spong, famous for holding board meetings in far-flung surf spots, has a personal wealth estimated in the tens of millions of dollars.

Yet becoming one of Queensland's richest men has been a tough process.

He has been bankrupt twice since starting a clothing brand in Bali in the 1970s. He has also worked for both Rip Curl and Billabong before buying sunglasses business SurfCult and reshaping it into surfwear and accessory label Cult Industries.