Seafolly on the search for sales after entering administration
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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 the 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 joins Australian retailers including Tigerlily, G-Star Raw and Hong Kong-owned Jeanswest in collapsing under the pressure of the pandemic.
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.
Questions & Answers
Q.Which company owns Seafolly?
Which company owns Seafolly?
Seafolly is owned by the US private-equity investment company L Catterton. This company is controlled by the Arnault family, which also owns LVMH.
Q.How many Seafolly stores are currently operating?
How many Seafolly stores are currently operating?
Seafolly operates 44 stores in Australia and 12 overseas locations. The article notes that approximately four of the overseas stores are located in Singapore.
Q.What will happen to existing gift cards and reward points?
What will happen to existing gift cards and reward points?
All gift cards and reward points will continue to be redeemable. The Australian stores will also continue to trade during the administration process.
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