‘Crippling financial impact’ of Covid-19 puts PE-backed swimsuit maker Seafolly into administration

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L Catterton-backed swimsuit maker Seafolly has fallen into administration due to the “crippling financial impact” of the coronavirus crisis.

Scott Langdon and Rahul Goyal of KordaMentha Restructuring have been named as voluntary administrators of Seafolly and its related Sunburn business.

L Catterton picked up a controlling stake in Seafolly in 2014 when it was L Capital Asia, the buyout house backed by LVMH Moet Hennessy Louis Vuitton.

L Capital Asia said at the time that it planned to tap into Seafolly’s brand to expand it out into other lifestyle product categories and develop it into new markets.

Administrator Langdon reassured customers it will be business as usual for Seafolly customers while the Administrators assessed the business.

He confirmed that KordaMentha will immediately commence a sale of business process, with interested parties asked to contact the KordaMentha Sydney office.

“Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business,” Langdon said.

Seafolly has a retail network of 44 stores throughout Australia and 12 stores overseas.

Consumer-focused PE firm L Catterton was created at the start of 2016 through a tie-up between US buyout house Catterton, investment firm Groupe Arnault and luxury conglomerate LVMH Group.

The deal combined Catterton’s North American and Latin American private equity operations with LVMH and Groupe Arnault’s European and Asian private equity and real estate operations.

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