Iconic Australian bikini brand Seafolly goes into administration with 120 staff losing their jobs

• Seafolly has become latest fashion brand to go into voluntary administration
• Scott Langdon and Rahul Goyal from KordaMentha Restructuring appointed
• They cited the 'crippling financial impact of COVID-19 pandemic' as the reason

Iconic swimwear brand Seafolly has become the latest fashion brand to go into voluntary administration, and the coronavirus pandemic is to blame.

Scott Langdon and Rahul Goyal from KordaMentha Restructuring were appointed as administrators of the fashion brand on Monday.  

'Seafolly made the appointment because of the crippling financial impact of the COVID-19 pandemic,' a statement from KordamMentha said.

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Iconic swimwear brand Seafolly has become the latest fashion brand to go into voluntary administration, saying the coronavirus pandemic is to blame

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They cited the 'crippling financial impact of COVID-19 pandemic' as the reason (pictured: Gigi Hadid shooting for Seafolly in 2015)

Mr Langdon said the company will operate as usual while the business is assessed but up to 120 staff are at risk of losing their jobs.

'All Seafolly gift cards and the popular Beach Club Rewards points will continue to be redeemable at all Seafolly stores,' Mr Langdon said. 

'We encourage all loyal Seafolly customers to come to the retail stores and redeem their Beach Club Rewards, plus earn more points.' 

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Mr Langdon said the company will operate as usual while the business is assessed but up to 120 staff are at risk of losing their jobs (pictured: Model Jessica Hart (front) in Seafolly)

KordaMentha has plans to sell the business immediately and is urging anyone interested to contact them.

'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. 

The women's beachwear fashion brand has been operating since 1975 and has 44 stores across the country with 120 staff.

Seafolly also has 12 stores overseas and was once believed to be the most well-known swimwear brand in Australia.

Scott Langdon and Rahul Goyal from KordaMentha Restructuring were appointed as administrators of the fashion brand on Monday

Last week, department store Myer cut 90 head office roles, representing around one per cent of its total workforce following the coronavirus downturn.

Team members across management, business support and administration were made redundant and more than 45 employees were redeployed to new positions.

The retailer was forced to close its doors and send 10,000 staff members home during the coronavirus lockdowns in late March and April. 

Before the pandemic hit, stagnant wage growth was already weighing on the retail sector and a number of long-standing traders had already gone bust.

Harris Scarfe was forced to close its doors in December 2019, after 169 years selling homewares, bedding and linen to Australians.

The closure of its 66 stores before Christmas resulted in 1800 job losses nationwide.

In January, Australian clothing giant Jeanswest went into voluntary administration, leaving almost 1,000 workers at 146 stores in limbo.

The iconic jewellery retailer Wallace Bishop also warned auditors it may go under in 2020 due to financial strain, putting the jobs of 500 staff at 50 stores in jeopardy.