Seafolly is now sold to a relatively unknown Asian private equity company for $70m.
👉 Background: Seafolly launched back in 1975 and is known for making the classic bikini VERY popular. And it's had some pretty big ambassadors too — we're talking Miranda Kerr, Shanina Shaik, and Jesinta Franklin.
👉 What happened: Back in 2014, Seafolly's OG founders sold about 70% of the brand to L Capital Asia, which is owned by LVMH. The plan was to turn Seafolly into a global lifestyle brand... but it didn't work out. In fact, Seafolly fell into voluntary administration in 2020.
👉 What else: Seafolly kinda bounced back — but now it's now sold to a relatively unknown Asian private equity company for $70m.
💡When ownership of a company changes, the fabric of the company changes — especially when ownership moves from a founder-led business to private equity or strategy buyers.
💡In Seafolly's case, it went from a family business to being owned by private equity. And as a result, it faced huge challenges. Think: scaling globally quickly and difficulties with supply chain.
💡Private equity owners often prioritise financial performance and may overlook the company's brand essence and consumer connection. And in this case, it seems to have hurt.
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