Australian swimwear brand Seafolly is the latest retail sector casualty, going into voluntary administration.
The iconic bikini brand blamed the economic downturn of COVID-19 as the reason behind its collapse.
Voluntary administrators Scott Langdon and Rahul Goyal from KordaMentha Restructuring have said it would be “business as usual” while they assess the brand, which currently has 44 stores in Australia and 12 international stores.
He said: “Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business.”
Seafolly made headlines in late October last year after it was brought to ad standards for being “degrading” and “sexist”.
The ad, created by independent agency Thinkerbell, was brought to Ad Standards under the AANA Code of Ethics for allegedly being exploitative or degrading, and featuring sex, sexuality or nudity.
Ad Standards dismissed the complaint Australian swimwear brand Seafolly’s Own your Folly campaign ruling it was not “degrading” or “sexist”.
Langdon confirmed KordaMentha will immediately try and sell the business, asking interested parties to contact the KordaMentha Sydney office.
He said: “Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business.”
Seafolly made headlines in late October last year after it was brought to ad standards for being “degrading” and “sexist”.
The ad, created by independent agency Thinkerbell, was brought to Ad Standards under the AANA Code of Ethics for allegedly being exploitative or degrading, and featuring sex, sexuality or nudity.
While the in-store retail industry has been struggling for a while, COVID-19 has sent many brands to the brink of collapse.
Last months Victoria’s Secret announced it was set to permanently close 250 US and Canadian stores as the beleaguered retailer faces another blow, its Parent company L Brands revealed on Wednesday.
L Brands, which also owns Bath & Body Works, reported net sales during the first quarter of 2020 fell 37 per cent to $1.65 billion ($AU2.5b), compared to the same period last year, with almost all of the company’s stores forced to close in the final weeks of the quarter due to the coronavirus.
Most recently in Australia, Wesfarmers, owner of Target and Kmart, revealed a major restructuring of the two chains, shutting up to 75 Targets and converting a further 92 in Kmart stores.
Wesfarmers said the restructure was essential to reducing Target’s unviable cost base due to its consistent underperformance.
