Iconic swimwear brand Seafolly has become the latest fashion brand to go into voluntary administration, saying the coronavirus pandemic is to blame.
Scott Langdon and Rahul Goyal from KordaMentha Restructuring were appointed as administrators of the fashion brand on Monday.
‘Seafolly made the appointment because of the crippling financial impact of the COVID-19 pandemic,’ a statement from KordamMentha said.
Mr Langdon said the company will operate as usual while the business is assessed but up to 120 staff are at risk of losing their jobs.
‘All Seafolly gift cards and the popular Beach Club Rewards points will continue to be redeemable at all Seafolly stores,’ Mr Langdon said.
‘We encourage all loyal Seafolly customers to come to the retail stores and redeem their Beach Club Rewards, plus earn more points.’
KordaMentha has plans to immediately commence a sale of the business and is urging anyone interested to contact them.
‘Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business’, Mr Langdon said.
The women’s beachwear fashion brand has been operating since 1975 and has 44 stores across the country with 120 staff.
Seafolly also has 12 stores overseas and was once believed to be the most well-known swimwear brand in Australia.