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Seafolly Just Saved this Retailer from Going Under
Seafolly has just acquired one of Australia’s leading swimwear retailers to create a robust and sustainable business for the future.
Seafolly ‘s administrators have helped save Jets Swimwear from collapse. Scott Langdon and Rahul Goyal, administrators for Seafolly, announced that the purchase had been finalised over the weekend.
“It makes a lot of sense to bring Jets into the Seafolly group because the two businesses serve different market segments in the fashion swim category,” said Langdon.
Jets’ parent company, PAS Group, recently filed for voluntary administration, leaving the rival swimwear company hanging in the balance. However, Langdon understands that the combination of the two brands can create further synergy within the swimwear category.
“The combination presents clear and material synergies around design, wholesale and supply chain,” he said.
PAS Group entered into voluntary administration in May – under its name includes retailers such as Review, Black Pepper, Yarra Trail and Designworks. Amid the pandemic, PAS Group’s CEO, Eric Morris, noted that there were significant issues facing the Group, and were looking to restructure the company.
“The Australian retail sector was already facing significant challenges prior to the COVID-19 pandemic,” he said.
Seafolly will be a ‘stronger business’ thanks to this new acquisition, explained Langdon. “All interested parties who signed confidentiality agreements in the final stages of the Seafolly process agreed that the Jets purchase would make Seafolly a stronger business.”
“This, in turn, provided more competitive tension and a better return for Seafolly creditors than would have been the case. The Jets purchase will be funded with new money.”
Jets will remain a wholesale company, but will also have a core focus on e-commerce.
“The strategic consolidation of Jets and Seafolly, two of Australia’s leading swimwear brands, will best place the labels to flourish in coming months as the national economy continues to reopen,” said Langdon.
Proceeds of the sale will go towards employee claims, as well as the voluntary administrator’s trading costs. From there, the rest will go on to support the sole secured finance creditor of Jets Swimwear.
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