Seafolly Pty Ltd, an Australian swimsuit maker part-owned by French fashion giant LVMH Moet Hennessy Louis Vuitton SE, has appointed administrators, citing a sales downturn from the coronavirus.
“Seafolly made the appointment because of the crippling financial impact of the COVID-19 pandemic,” said Scott Langdon and Rahul Goyal, of KordaMentha Restructuring, in a statement on Monday.
Discretionary retailers around the world have faced store closures and a collapse in consumer spending since governments ordered most businesses shut to slow the spread of the virus earlier this year.
Seafolly’s move into adminstration points to gaps in various corporate relief packages set up by the Australian government during the shutdown, such as a wage subsidy scheme and a deferral of certain financial reporting obligations to help companies stay afloat.
A month earlier, Australian clothing retailer PAS Group Ltd hired administrators citing the pandemic. Local media reported in March that Tigerlily, a swimsuit maker rival of Seafolly, also went into administration.
KordaMentha, Seafolly’s administrator, did not give details about the company’s decision to hand over control, but did say it would “immediately commence a sale of business process”.
Seafolly’s current owner, L Catterton, a US private equity firm part-owned by LVMH, bought the Australian company in 2014, according to its website.
The Australian label is sold in 1200 stores across 46 countries, the website said.