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Iconic Aussie Retailer Saved From Collapse Following ‘Competitive Process’
Seafolly has been saved from collapse after administrators settled on a potential new owner.
Administrators, KordaMentha Restructuring, has chosen American-owned equity, L Catterton, as the preferred bidder of the swimwear retailer. The equity was the former owner of the swimwear brand.
In 2018, L Catterton lent Seafolly $5 million and renegotiated its banking facilities due to inventory writedowns and redundancy costs.
“I was overwhelmed by the level of interest and competition to own one of Australia’s most recognisable brands,” said Scott Langdon, the Administrator for Seafolly.
“With an optimised retail, online and wholesale network, Seafolly will continue to be the iconic Australian beachwear brand that customers know and love.”
All gift cards and reward points will be honoured for customers. Seafolly stores will remain open, and more than 110 employees will keep their jobs.
More than 15 bidders had their eyes on the Aussie swimwear retailer which filed for voluntary administration at the end of June 2020. “This is a terrific result after a very competitive process,” Langdon continued.
The retailer cited COVID-19 as the major reason for its collapse. At the time of the announcement, Langdon expected a ‘high level’ of interest for the retailer.
“Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business,” Langdon said at the end of June.
However, according to AFR, the secured creditors were ‘worried’ about the retailer’s financial position in early January, and appointed the restructuring firm to look at its finances.
The only business currently generates online sales of $7 million and has been growing 10 percent YoY over the past three years.
Further details about the acquisition from L Catterton will be sent to creditors this evening and will be voted on at the upcoming meeting on August 3rd.
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