The business has room for growth according to Lachlan Castran, with e-commerce expansion as one option.

Iconic Phillip Island business Island Surfboards hits the market after 55 years

Emily Hutchinson|today

Island Surfboards on Phillip Island, Victoria, is up for grabs, allowing surfers to hang 10 every day while operating a thriving business.

Founded in 1969, the surf business is one of Victoria’s most recognised surf brands and one of Australia’s longest-established independent surf companies. It has now been put on the market as a going concern through an expressions of interest campaign and comes with a long-standing reputation as one of the go-to surf shops on Phillip Island, where the likes of the Hemsworth brothers learned to catch waves.

Its operations are split between a flagship store and manufacturing headquarters at 147 Thompson Avenue, Cowes, and a second retail outlet and surf school beside Smiths Beach, one of the island’s best-known surfing destinations.

There are two locations including the retail store in Cowes and a smaller retailer and surf school on Smiths Beach.

Lachlan Castran, director at Castran, who is marketing the business alongside Alex Scott & Staff, says its history and local identity made the sale unique.

“Businesses with this sort of history, brand recognition and genuine connection to their location don’t come to market very often,” he says.

More than a surf shop

The business began when two local surfers, Tom Tyrrell and Matt Ryan, started shaping boards for their mates; back then, the surf was uncrowded and rolled in consistently. The business has since developed several complementary income streams, encompassing retail, manufacturing, the surf school, coaching, equipment hire, repairs, wholesale and online sales, all operating under the one brand.

The two locations serve different parts of the market. Cowes is Phillip Island’s principal commercial and tourism hub, while Smiths Beach puts the school, hire operation and store alongside the activity that drives the brand.

“You’ve got Cowes capturing the main retail and tourism market and Smiths Beach putting the business right where people are actually surfing,” Castran explains. “The two locations work really well together.”

The surf school is also pitched as a customer-acquisition channel rather than a standalone division, catering for individuals, schools and corporate groups.

Castran says it has established relationships with more than 150 schools over the past five years, giving an incoming owner a base from which to expand education programs.

Founders Tom Tyrrell and Matt Ryan pictured in 1969 outside the surf shop in Cowes.

“The surf school is a great part of the business because it doesn’t just generate revenue, it introduces new customers to the brand. Someone can start with a lesson and eventually become a customer for boards, equipment, apparel and other products.”

Expansion opportunities beyond Phillip Island

The in-house manufacturing operation provides another point of difference. Island Surfboards designs and produces its own boards and softboards, alongside selling surfwear and equipment.

For a buyer, the next stage could be about extending the reach of the existing operation with e-commerce, wholesale distribution, branded apparel, national sales and further surf-school growth as potential expansion areas.

“The online side is probably one of the more obvious areas for growth. People discover the brand while they’re on Phillip Island, but there’s no reason that relationship has to end when they go home,” says Castran.

“The real opportunity is taking a business with more than 55 years of history and looking at how you grow it for the next generation.”

The Island Surfboards brand has been entrenched in Australian surf culture since the '60s.

Tourism boom strengthens investment appeal

That proposition is supported by a substantial visitor economy. Destination Phillip Island’s latest annual reporting puts visitation at about 2.8 million annually, generating more than $875 million in visitor spending. Phillip Island Nature Parks separately welcomed its one-millionth visitor for 2025 in November, after visitation increased 10 per cent from the previous year.

The island’s proximity to Melbourne, wildlife attractions such as the Penguin Parade, the Grand Prix, and surf culture expose the business to local, domestic and international customers.

“That accessibility and visitor volume are a big part of the opportunity,” says Castran.

Expressions of interest close at 2pm on Tuesday, October 6, 2026.