Monday, May 29, 2023

Seafolly becomes latest Australian company to be put up for sale years after being rescued from administration

One of Australia’s most famous and glamorous swimwear brands has gone on sale less than three years after being rescued from administration.

Seafolly was brought to market by label private equity owner L Catterton with FTI Consulting contracted to manage sales.

The swimwear brand is the latest Australian company to go up for sale after Japanese firm Kirin launched a $1.85 billion takeover bid for Blackmore and 7-Eleven announced it was looking for a new owner.

There was a backlash after Seafolly hired a bearded non-binary worker for one of its campaigns in March.

Seafolly, one of Australia’s best-known swimwear brands, is on sale less than three years after going into administration during the Covid-19 pandemic. Australian model Jesinta Franklin, who represents SeaFolly, is pictured

L Catterton, the private equity firm that owns the bikini brand, has told potential investors that it expects sales to increase by 45% over the next six years. Australian model Lara Worthington, former SeaFolly ambassador, is pictured

L Catterton has told potential investors that he expects Seafolly’s sales to grow by 45% over the next six years.

FTI Consulting said the company has a 32 per cent share of the women’s swimwear market in Australia and is on track to generate $90 million in this financial year.

This was “driven by two consecutive years of strong double-digit growth across all key channels and markets”, as the world emerges from the pandemic.

The Australian Financial Review reported that the first round of bids for the company have already been filed with the second round due out next month.

According to the company’s three-year business plan, Seafly’s sales are expected to grow to $129.7 million in the 12 months ending June 2026.

About 56% of its current sales are in Australia and New Zealand, 24% from Europe, the Middle East and Africa, and 13% from the United States.

The company has 30 stores, 12 of which had revenue of more than $1 million in the last fiscal year.

Seafolly also sells through 2,100 other retailers such as the David Jones department store chain.

The business collapsed in June 2020, with L Catterton blaming “the crippling financial impact of the Covid-19 pandemic”.

L Catterton bought a 70% stake in the company from the Halas family for about $70 million …

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