Seafolly becomes latest Aussie company to go up for sale years after being saved from administration

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, 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 statement 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

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

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

THE HISTORY OF SEAFOLLY

Seafolly was founded in 1975 by Peter and Yvonne Halas in Sydney.

According to their son Anthony, Seafolly’s origins were simple:

My father, Peter Halas, arrived in Australia in 1956 as an immigrant from Hungary. He immediately fell in love with Sydney beach culture and even met my mum, Yvonne, in Bondi Beach,” he previously wrote to Daily Mail Australia.

‘Peter was working as a salesperson for a swimwear brand when he decided to start his own swimwear business.

‘The brand you know today as Seafolly actually started out as ‘Peter’s Folly’, meaning he didn’t take it too seriously at first, it was more of a passion project that grew into something much bigger.

‘They have built the brand by staying true to the original mission of sharing the Australian beach lifestyle with the world.

Seafolly was the first company to notice the fitness trend, launching activewear in the mid-1970s. In the Jane Fonda-fuelled ’80s, Seafolly was actually a leader in the category,” he added.

The couple’s son, Anthony, took over as CEO in 1998 and the brand expanded into Europe, North America and Asia.

L Catterton Asia took a majority stake in the company in December 2014.

Seafolly went into administration in June 2020 with the Covid-19 pandemic blamed for his woes.