More than 50 potential buyers are believed to be lining up for the iconic swimwear brand Seafolly, as its administrators shut 15 of the company’s Sunburn stores to boost profitability.
It is understood that interest has been received from both local and international parties, with information memorandums sent to suitors on Monday.
Indicative bids will be due on July 12.
It is understood that the plan for voluntary administrator KordaMentha is to have a sale proposal ready for the second meeting of creditors in August.
KordaMentha was appointed to Seafolly last week, as it fell into voluntary administration, owning funds to lenders including ANZ Bank.
Seafolly was understood to be highly successful under the leadership of Anthony Halas, who ran the company until 2016.
The Halas family sold 70 per cent of the business to L Catterton in 2014 and it is now understood that the remaining stake was offloaded to the private equity firm four years later.
Since the family sold out two years ago, it has not had any ties with the swimwear brand.
It’s thought that KordaMentha will close 15 of Seafolly’s Sunburn stores over the next fortnight, while 25 Seafolly-branded stores will remain open for business and trade as normal during the sale process.
“The slimming down of the cost structure and closure of unprofitable stores will make the Seafolly business much more attractive to buyers,” said administrator Scott Langdon.
“Seafolly has a clearly defined and strong brand globally and is a market leader in its niche, while Sunburn struggled to reach the same heights.”
Mr Langdon said the Sunburn stores had sales to clear the inventory.
Stores to close over the next fortnight are at Erina, Werribee, Cronulla, Springfield, Bondi, Marina Mirage, Shell Harbour, Mosman, Pacific Fair, Chermside, Joondalup, Macquarie, Manly and Top Ryde.
The collapse comes after rival swimwear brand Tigerlilly, which was founded by billionaire James Packer’s former wife Jodhi Meares, called in the administrators in March.
Other retailers to collapse recently include Harris Scarfe, Jeanswest, G-Star, Aussie Disposals, Ishka and Bardot.
Seafolly has a retail network of 44 stores throughout Australia and 12 stores overseas, and employed around 121 people locally. It was founded in 1975 by Peter and Yvonne Halas. The swimwear brand liked to think of itself as being ahead of the curve — when the 80s Lycra trend hit the world, it was Seafolly who adapted it first into swimwear.
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