L Catterton Asia-backed Australian swimwear brand Seafolly has appointed KordaMentha Restructuring as a voluntary administrator, according to a press statement.
Seafolly cited crippling financial condition and sales downturn due to the COVID-19 pandemic for the move.
KordaMentha Restructuring partners, Scott Langdon and Rahul Goyal, will work as the administrators for Seafolly, which also includes entities related to the Sunburn business.
KordaMentha’s Sydney office will immediately commence the sale of the 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.
Despite the appointment, Seafolly will continue its business as usual for its customers. The Seafolly gift cards and Beach Club rewards points will continue to be redeemable at all Seafolly stores, he added.
Founded in 1975, Seafolly has a retail network of 44 stores throughout Australia and 12 stores overseas.
In December 2014, L Catterton, formerly L Capital Asia, the Asian PE fund sponsored by LVMH Moët Hennessy Louis Vuitton S.A. (LVMH) acquired a controlling stake in Seafolly for an undisclosed amount. The investment was made through L Capital Asia 2.
Seafolly noted more than A$100 million of revenue when it was acquired by L Capital Asia, with 14 Seafolly stores and 23 Sunburn Stores in Australia, as well as six stores in Singapore and California, USA.