Culture Kings boss Simon Beard has shrugged off losing a staggering $500million in a sharemarket bloodbath as he insisted he only needed $30million anyway.
The cult street fashion chain – which started as a market stall on the Gold Coast in 2008 – sold out to US company a.k.a Brands in 2021 in a deal worth $307million plus 23.3million shares.
It catapulted Mr Beard and his wife Tahnee into Australia’s Rich List with a combined worth of $626million, which increased further when a.k.a Brands share price later soared.
At one stage, the 23.3million shares hit $22.09 each and were worth $514.6million before a huge Wall St sell-off saw them plummet to just $0.69 by Wednesday.
The price crash means the Beards’ $500million-plus shareholding nest egg is now worth just $16million.
Culture Kings boss Simon Beard (pictured with wife Tahnee) has shrugged off losing a staggering $500million in a sharemarket bloodbath
At one stage the 23.3million shares hit $22.09 each and were worth $514.6million before a huge Wall St sell-off saw them plummet to just $0.69 by Wednesday
But in a video posted to TikTok by Brisbane business partner and property developer Emil Juresic, Mr Beard took the loss in his stride and remained philosophical.
‘You take risks, roll the dice, sometimes you win – sometimes you lose,’ he said in the video, filmed in a garage filled with luxury cars including a Bentley Continental.
The Culture Kings founder smiled bashfully as he admitted he’d just read about his loss as Mr Juresic asked him: ‘How does it feel to lose $500million, Simon?’
‘It sucks, just checking out and watching that share price every day,’ he said.
‘But it’s an entrepreneur’s journey. You de-risk some – it’s all house money, but…f***!’
He said he was grateful to have taken the $307million in cash when they sold out instead of accepting additional shares.
‘I’m very thankful my wife didn’t let me bet the farm and roll the dice on the whole lot again, which I wanted to,’ he admitted.
‘As an entrepreneur you just want to bet yourself. But it’s an important lesson to de-risk because even though everything in the business is ripping, it’s just the market.’
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Mr Juresic quizzed him on whether he thought there was a difference between $30million and $300million – but Mr Beard said no.
‘$30million is the ticket to get to because above that is honestly – you can buy all the toys,’ he said.
‘Yachts and planes are the only thing above that.’
Mr Juresic joked that he would take the rest of Mr Beard’s money above $30million, but Mr Beard fired back: ‘I wanna hold onto it for a bit longer just to make sure…’
Culture Kings became a global cult after attracting the attention of stars like Snoop Dogg who appeared at the stores selling exclusive sneakers and streetwear.
It turned over $200million in 2020 prior to the sale to a.k.a. Brands, with a $20million net profit.
Culture Kings became a global cult after attracting the attention of stars like Snoop Dogg who appeared at the stores selling exclusive sneakers and streetwear
The sale of the company to US firm a.k.a Brands catapulted the Beards into Australia’s Rich List with a combined worth of $626million which increased further when Brands shares soared
Huge queues outside stores are a regular occurrence as teenagers, including eshays, line up to get inside to see DJs and snap up special offers.
In March, it was revealed the Beards had now cut their day-to-day ties with the chain though following the glitzy opening of their showcase store in Las Vegas.
‘As the founder it’s my baby, and Tahnee has delivered the Las Vegas store and is beating expectations,’ Mr Beard told The Australian.
Since selling out, they have been quietly building an impressive property portfolio, snapping up a $15million penthouse in Surfers Paradise and a $12 million mansion on the Isle of Capri in the Mediterranean.
‘Tahnee and I are entrepreneurial to our core and the public company or holding company role it’s not for me, not my best fit,’ he added.
‘We have built a great team there and I believe they can go and run it, I am still on the board. I’m there whenever I can help and guide it but for us, we are entrepreneurs.’
