Despite being in a state of administration, swimwear brand Seafolly has picked up also-collapsed rival Jets a week after a unanimous vote to approve former (and now current) owner L Catterton’s deed of company arrangement.

Administrator Scott Langdon of KordaMentha said it makes sense for the two businesses to exist under the same banner as they served different market segments.

“The combination presents clear and material synergies around design, wholesale and supply chain,” Langdon said.

Jets, which is currently owned by PAS Group, will be run primarily as an e-commerce and wholesale business under Seafolly.

Negotiations between the two business wrapped up over the weekend and began while both were in administration, with KordaMentha also conducting the sale process that ultimately led to L Catterton to resume control of what remained of Seafolly.

Prior to administration Seafolly traded in 44 stores locally and 12 overseas, and now trades across 20 stores and employs “more than 110” staff from around 400.

An unnamed source told AFR that L Catterton had driven the business into the ground and made hundreds of its workers redundant, and was now buying it back “for cents on the dollar”.

The source also expressed concern that the administration process was merely a formality and that the restructure had already been agreed on before the business went down.

Inside Retail has not been able to verify these claims.

KordaMentha said the DOCA was a terrific result for the business, and that it was in the best interest of all creditors and staff.

It’s not clear when L Catterton’s DOCA will be executed.