Born on the beaches of Sydney in 1975, the iconic Aussie brand announced on Monday it has thrown in the towel on the back of the crippling coronavirus pandemic, appointing Scott Langdon and Rahul Goyal of KordaMentha Restructuring as its voluntary administrators.
In a statement issued by the firm, Mr Langdon confirmed that KordaMentha will immediately commence a sale of business process.
“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.
Customers have been reassured it will be business as usual while the administrators assess the business.
“All Seafolly gift cards and the popular Beach Club Rewards points will continue to be redeemable at all Seafolly stores. We encourage all loyal Seafolly customers to come to the retail stores and redeem their Beach Club Rewards, plus earn more points,” Mr Langdon said.
Seafolly has a retail network of 44 stores throughout Australia and 12 stores overseas.
Some of the stores operate under the Sunburn brand, which has also been included in the appointment.
Seafolly has joined a long list of companies that have entered administration in 2020, with its peer Tigerlily calling in the administrators in March for similar reasons.
Recent ABS data has suggested that while a 16.3 per cent month-on-month lift in estimated retail turnover was seen in May, when compared to a year earlier, retail has in fact declined by 5.3 per cent.
Australian Retailers Association (ARA) CEO Paul Zahra has warned that May only marks the beginning of a slow and hard-fought path towards recovery for the retail sector.
“Retailers are still experiencing a ‘sugar hit’ from suppressed spending during lockdowns across the previous month and we are conscious that consumer spending is also bolstered by JobKeeper payments,” he said.
“While most stores have now reopened, many face significant ongoing financial pressure resulting from hibernation, increased new hygiene protocols and a reduction in overall foot traffic.”