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One of Australia’s most celebrated and glamorous swimwear brands has gone up for sale less than three years after it was rescued from administration.
Seafolly was brought to market by the label’s private equity owner, L Catterton, with FTI Consulting brought in to handle the sale.
The swimwear label is the latest Australian company to go up for sale after Japanese company Kirin made a $1.85 billion takeover bid for Blackmores and 7-Eleven announced it was looking for a new owner.
Seafolly caused a stir in March after it hired a bearded nonbinary activist for one of its campaigns.
Seafolly, one of Australia’s most celebrated swimwear brands, is being sold less than three years after it was rescued from administration during the Covid-19 pandemic. Pictured is Australian model Jesinta Franklin, who has represented Seafolly
L Catterton, the private equity firm that owns the bikini brand, has told potential investors it expects sales to grow 45 percent over the next six years. Pictured is Australian model Lara Worthington, a former Seafolly ambassador
L Catterton has told potential investors it expects sales at Seafolly to grow 45 percent over the next six years.
FTI Consulting said the company accounts for 32 percent of Australia’s womenswear swimwear market and is on track to earn $90 million this financial year.
This has been “driven by two consecutive years of strong double-digit growth across all channels and key markets” as the world emerges from the pandemic.
First round bids have already been submitted for the company and the second round closes next month Australian Financial Review reported.
Seafolly’s revenue is expected to grow to $129.7 million in the 12 months to the end of June 2026, according to the company’s three-year business plan.
About 56 percent of current sales are in Australia and New Zealand, 24 percent come from Europe, the Middle East and Africa, and 13 percent from the US.
The company owns 30 stores, 12 of which had sales of more than $1 million in the past fiscal year.
Seafolly also sells through 2,100 other retailers, such as department store chain David Jones.
The company collapsed in June 2020 with L Catterton blaming the ‘crippling financial impact of the Covid-19 pandemic’.
L Catterton had bought a 70 percent stake in the company from the Halas family in 2014 for about $70 million.
Creditors voted for a ‘rescue’ proposal from L Catterton after Seafolly went into voluntary receivership three years ago.
Victoria’s Secret model Shanina Shaik (pictured) is another supermodel who has fronted Seafolly campaigns in the past
The latest accounts filed with the Australian Securities and Investments Commission show that Seafolly lost $91.9 million in the 12 months prior to administration.
The company had also lost $45.8 million in fiscal year 2019/2020, the second half of which coincided with the onset of the pandemic and lockdowns.
In its sales pitch, FTI Consulting described Seafolly as ‘Australia’s most loved iconic swimwear brand.
We embody the spirit of the Australian beach and its unique lifestyle, inspiring confidence through our undying optimism and unwavering commitment to empowering women to feel confident on the beach.
“The short-term strategy is focused on increasing market share within key wholesale accounts, boosting e-commerce platforms and optimizing our retail footprint.”
In March, the company was threatened with customer boycotts after hiring a bearded, nonbinary activist as its new ambassador.
The label is known for glamorous advertising campaigns featuring some of the world’s most beautiful women, such as Gigi Hadid, Shanina Shaik, Lara Worthington, Miranda Kerr and Jesinta Franklin.
But it sparked anger in some quarters by hiring stylist Deni Todorovič for one of his campaigns.
Todorovič was assigned male at birth, but uses she/they pronouns and identifies as non-binary and transgender.
Author and artist Alexandra Marshall said at the time that it felt like the fashion brand was “mocking women,” adding that she would “never” buy Seafolly swimsuits again.
Bye @seafolly. Never again. Have been buying swimwear from you for many years. Never again,” she wrote on Twitter.
Another said the brand “deserves to be canceled by real women.”
Non-binary activist Deni Todorovič (pictured) was announced in March as the new ambassador for Australian swimwear brand Seafolly, prompting threats of boycotts from customers
Seafolly becomes latest Aussie company to go up for sale years after being saved from administration