Seafolly seeks sale after entering administration
The Covid-19 pandemic has claimed another regional fashion label, with Australian swimwear and beachwear brand Seafolly collapsing into administration yesterday.
Scott Langdon and Rahul Goyal of KordaMetha Restructuring were named as administrators, citing the pandemic as a key reason for the collapse.
Langdon confirmed KordaMentha will immediately begin a sale of business process.
Seafolly has 44 stores in Australia and 12 overseas including about four in Singapore. It recently launched on Tmall in Mainland China hoping to get traction in that market.
“Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business,” Langdon said.
Seafolly’s Australian stores will continue to trade, and all gift cards and reward points will continue to be redeemable.
Seafolly is owned by US private-equity investment company L Catterton, in turn controlled by the Arnault family which owns LVMH. The foreign ownership may have made it impossible for the business to receive the Australian government’s JobKeeper wage subsidy.
This story first appeared on our sister site Inside Retail Australia.