One of Australia’s most iconic swimwear brands has been sold just months after their non-binary ambassador saw some customers threaten to boycott the label.
Seafolly, a brand promoted by models like Lara Worthington, Miranda Kerr and Gigi Hadid, was sold by US retail specialist L Catterton in a deal worth about $70million.
The sale comes just months after the swimwear company was rescued from administration and was forced to halve its operations from 60 to 30 stores.
Seafolly’s overseas buyer is understood to be Bondi Brands Group, which documents from the Hong Kong Companies Registry reveal was first created in June.
Its key founder is apparel manufacturer Vision Brands Group, with the company also associated with other offshore shareholders, Australian Financial Review reports.
One of Australia’s most iconic swimwear companies has been sold to an overseas buyer for $70million (pictured is Seafolly’s global ambassador Jesinta Franklin)
Seafolly sparked backlash in March after it hired bearded non-binary activist and stylist Deni Todorovič (pictured_ to be an ambassador and model in a new campaign
The company was first listed for sale four months ago with FTI Consulting engaged to handle the sale of one of Australia’s most nostalgic swimwear brands.
Seafolly sparked backlash in March after it hired bearded non-binary activist and stylist Deni Todorovič to be an ambassador and model in a campaign.
Todorovič, 34, uses they/them pronouns and identifies as non-binary.
Following the launch of the advertising campaign – which features a bearded Deni posing in lime green Seafolly bikini bottoms and a matching cover-up – the activist said they had been relentlessly trolled.
Writer Alexandra Marshall spoke out against the campaign, saying the swimwear brand was ‘mocking women’ and warned she would boycott Seafolly.
‘Bye @seafolly. Never again. Been buying swimsuits from you for many years. Never again,’ she posted on Twitter.
‘Boycott boycott boycott @seafolly erasing women is NOT OK! Shove you’re products I’m done!’ another user wrote.
Others targeted Todorovič on Instagram, with one writing: ‘Since when do women have penises in their bikini bottoms. This is beyond disgusting and Deni you are trying to eradicate biological women. Deplorable.’
However, many others praised the brand for presenting a diverse campaign and left positive comments on Seafolly’s official Instagram page.
‘As some one who hasn’t shopped at Seafolly for years I’ll be back now! Love seeing brands be inclusive and that is where I want my money to go,’ one woman wrote.
‘So amazing to see this, Seafolly. I love to see brands pioneering the celebration of pride and inclusion,’ another added.
The brand has been modelled by Miranda Kerr on numerous occasions
Lara Worthington last posed in the iconic swimwear in June 2021
The swimwear label was a family business until 2014 when Hungary immigrant Peter Halas and his wife sold a 70 per cent stake for about $70million to L Capital Asia.
Two years later, L Catterton bought L Capital Asia and inherited several Australian brands including Seafolly, RM Williams and 2xU.
In 2018, the Halas family cut all ties. In June 2020, Seafolly fell into administration.
As Australia entered Covid lockdowns, Sydney-based investment firm KordaMentha were appointed as administrators and within months had backed a ‘rescue’ proposal.
It’s understood L Catterton put $10million of equity into Seafolly during the administration process, with Longreach Credit Investors also providing funding.
The brand downsized from 60 to 30 stores but continues to be sold overseas, most notably in the US department store Nordstrom.
Seafolly also sells through 2,100 other retailers such as Australia’s David Jones.
FTI Consulting said the company accounts for 32 per cent of the women’s fashion swimwear market in Australia and is on track to make $90million this financial year.
American model Gigi Hadid also donned the swimwear during a photoshoot in 2015
The brand downsized from 60 to 30 stores but continues to be sold overseas, most notably in the US department store Nordstrom (pictured, a Seafolly store)
This has been ‘driven by two consecutive years of strong double-digit growth across all channels and key markets,’ as the world emerges from the pandemic.
Seafolly’s sales are forecast to increase to $129.7million in the 12 months to the end of June 2026, according to the company’s three-year business plan.
Some 56 per cent of its current sales are in Australia and New Zealand, 24 per cent come from Europe, the Middle East and Africa and 13 per cent from the US.
Up to 12 Seafolly stores enjoyed revenues above $1million in the last financial year.
The latest accounts lodged with the Australian Securities and Investments Commission (ASIC) shows Seafolly lost $91.9million in the 12 months prior to going into administration in June 2020.
The company had also lost $45.8million in the 2019/2020 financial year, the second half of which coincided with the start of the pandemic and lockdowns.
