Seafolly falls into voluntary administration
An iconic Australian bikini brand has become the latest business victim of the coronavirus pandemic, with more than 100 jobs at risk.
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Swimwear brand Seafolly has become the latest business victim of the coronavirus pandemic, falling into voluntary administration with more than 100 jobs at risk.
Insolvency and advisory firm KordaMentha on Monday announced it had been appointed voluntary administrators of Seafolly which was launched from Bondi Beach in 1975.
It now has 44 stores across Australia – including six in Victoria – and 12 overseas and operates a network of around 2700 concessions outlets with other retailers including Myer.
It has also helped launch the careers of some of the nation’s most successful models including
Miranda Kerr, Shanina Shaik and Megan Gale.
“Seafolly made the appointment because of the crippling financial impact of the COVID-19 pandemic,” KordaMentha Restructuring partner Scott Langdon said.
Mr Langdon said KordaMentha will immediately commence a sale process for the business.
“Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business,” he said.
In the meantime, Mr Langdon said it would be business as usual and Seafolly gift cards and points from its loyalty program will continue to be redeemable at all stores.
“We encourage all loyal Seafolly customers to come to the retail stores and redeem their Beach Club Rewards, plus earn more points,” Mr Langdon said.
Seafolly is headquartered in Sydney and employs 121 staff.
It is owned by French luxury fashion and apparel company Louis Vuitton Moet Hennessy, which bought the business several years ago.
Rival swimwear brand Tigerlily, founded in 2000 by Jodhi Meares, collapsed into voluntary administration in March.
Other retailers to call in administrators over the past year include Harris Scarfe, Aussie Disposals, Jeanswest, Bardot, Kikki K, and Colette by Colette Hayman.