Seafolly resuscitated by ex-owner; 20 stores, 110 jobs saved
Seafolly has been offered a new lease on life by its former owner after falling into voluntary administration late last month.
The iconic Australian bikini brand announced its collapse on 29 June amid a tough retail environment that had worsened by Covid-19 and appointed KordaMentha as its voluntary administrator.
Before falling into voluntary administration, Seafolly had 44 stores across Australia and 12 stores overseas.
The brand shut 15 independent Sunburn stores and six loss-making Seafolly stores after the announcement of the collapse in a bid to cut costs.
A network of 20 Seafolly stores will remain open, saving 110 jobs.
“I was overwhelmed by the level of interest and competition to own one of Australia’s most recognisable brands,” said KordaMentha Restructuring partner Scott Langdon.
"This is a terrific result after a very competitive process.
“With an optimised retail, online and wholesale network, Seafolly will continue to be the iconic Australian beachwear brand that customers know and love.”
Gift cards and reward points will be honoured for all customers.
KordaMentha chose US private equity firm L Catterton as the preferred bidder after 80 investors, private equity firms and other companies showed interest in purchasing Seafolly.
The preferred bid is through a Deed of Company Arrangement (DOCA), the details of which have been sent to creditors. They will vote on the DOCA at the next meeting held next Monday.
L Catterton will not share any of the return to creditors, though it is Seafolly’s largest creditor, which increases the return to other creditors.
Peter and Yvonne Halas founded Seafolly in 1975. Between 2014 and 2018, it was acquired by L Catterton through a series of transactions.
L Catterton counts RM Williams, 2XU and Jones the Grocer in its portfolio, ABC reported.
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