Popular Australian swimwear and beachwear brand Seafolly has fallen to voluntary administration under the duress of the pandemic.
Scott Langdon and Rahul Goyal of KordaMentha Restructuring have been appointed as the administrators who said the decision was “because of the crippling financial impact of COVID-19.”
The brand currently operates 44 stores across the Australian continent along with 12 other outlets in US, Singapore and New Zealand. The retailer will continue trade for some time and all gift cards can still be used.
Although it is inevitable for there to be “high interest” in purchasing the brand due to its standing and reputation according to Langdon, it remains unclear whether Seafolly’s sister concern Sunburn Swimwear, will be offered together with the brand or separately to anyone interested.
Founded in 1975, the brand is one of Australia’s longest running home grown ventures. They currently have about 120 employees registered with but their fate is also unknown.
In 2014, L Catterton Asia, the private equity entity of luxury conglomerate LVMH, had bought a controlling stake in Seafolly but the Halas family who owns the brand retained their positions on the board.