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Swimwear brand Seafolly collapses due to ‘crippling’ COVID-19 crisis

“Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business”, Mr Langdon said.

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“All Seafolly gift cards and the popular Beach Club Rewards points will continue to be redeemable at all Seafolly stores. We encourage all loyal Seafolly customers to come to the retail stores and redeem their Beach Club Rewards, plus earn more points.”

Despite being an Australian brand, Seafolly has undergone significant international expansion in recent years, with 2700 stockists worldwide and stores in the US, Singapore and France.

Seafolly is owned by private equity firm L Catteron, an offshoot of consumer goods giant Louis Vuitton Moet Hennessy (LVMH), which also owns popular boot brand RM Williams.

L Catterton purchased 70 per cent of Seafolly for around $70 million in 2014 from the founding Halas family. At the time of purchase, Seafolly boasted annual revenues of more than $120 million.

The swimwear seller is the latest retailer to collapse under the pressure of COVID-19, with fellow swimwear retailer Tigerlily folding in late March, womenswear merchant PAS Group waving the white flag in May, and G-Star Raw also falling over last month.

Camping supplies company Aussie Disposals also fell into administration in mid-April, citing the pandemic as a contributing factor.

More collapses are expected across the industry in September once the government’s JobKeeper wage subsidy package ends.

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