Australian swimwear and fashion brand Seafolly recently went into voluntary administration after suffering ‘crippling financial impact’ due to the COVID-19 pandemic. The brand appointed KordaMentha as administrators, who will immediately begin the process to sell the business. Administrator Scott Langdon said it will be business as usual for customers.
Seafolly has launched a 70 per cent off sale on a range of clothing after the announcement and is cutting 120 staff. The huge discount has been offered on over 80 items, including women’s swimwear, skirts, jumpsuits, handbags and bathing suits for kids. Seafolly gift cards and Beach Club Rewards points will remain fully redeemable.
“Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business,” Langdon was quoted as saying by Australian media reports.
Seafolly was founded by Peter and Yvonne Halas in 1975, and has since grown to 44 stores in Australia and 12 overseas. In 2014, US private equity firm L Catterton purchased 70 per cent of the business for around $70 million.
L Catterton is linked to LVMH, the owner of several luxury brands including Louis Vuitton, Fendi and Marc Jacobs. It was spawned out of a partnership between LVMH and private equity firm Catterton in 2016.
Fibre2Fashion News Desk (DS)