Iconic Aussie label to be saved by former owner
Iconic Aussie swimwear brand Seafolly is set to be saved barely a month after going into administration, with administrators choosing its former owner to take the reins again.
Administrators Scott Langdon and Rahul Goyal from KordaMentha announced they had chosen private equity business L Catterton as the preferred bidder on Monday morning, beating out dozens of others.
Mr Langdon said he was "overwhelmed by the level of interest and competition", but the administrators had ultimately decided L Catterton could provide the best return to creditors.
The company is Seafolly's largest creditor, owed more than $25 million, but offered to forgo any return in favour of a higher return to the business' other creditors.
Mr Langdon said Seafolly would continue to honour all reward points and gift cards, and the swimwear brand will retain 20 stores across the country, saving 100 jobs.
"With an optimised retail, online and wholesale network, Seafolly will continue to be the iconic Australian beachwear brand that customers know and love," he said.
Seafolly entered administration in June, citing the toll of the coronavirus pandemic as its reason for collapse.
Creditors will receive a Deed of Company Arrangement on Monday night and vote for the new owner when the group next meet on August 3.
Originally published as Aussie label to be saved by former owner