The COVID-19 pandemic has claimed another fashion brand, with Australian swimwear and beachwear brand Seafolly collapsing into administration on Monday.
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 business process.
“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 44 stores across Australia will continue to trade, and all gift cards and reward points will continue to be redeemable in Seafolly’s 44 stores across the Australia and 12 stores overseas.
Seafolly joins retailers such as Jeanswest, Tigerlily and G-Star Raw in collapsing under the pressure of the pandemic, and as seen in the case of Bardot, private investors may not be so quick to pick up struggling brands that were previously attractive – with customers likely to begin focusing spending on essential and experiential purchases in a post-lockdown economy.
Seafolly is owned by international conglomerate L Catterton, which also owns R.M. Williams and 2XU locally, and which may have made it impossible for the business to receive the government’s JobKeeper wage subsidy.
Inside Retail has contacted Seafolly, L Catterton and KordaMentha for further information.