Seafolly purchases retailer Sunburn

SYDNEY: Swimwear brand Seafolly has purchased Queensland retailer Sunburnt underpinning a radical expansion of its existing retail portfolio. The acquisition, signed at the beginning of this month, will see the privately owned label take over all 12 of Sunburn's multi-brand stores.

Acquired for an undisclosed sum, the sale had been processed as a going concern and included existing leases across all sites, together with brand names, copyright and stock.

Up to 150 full-time and casual staff are employed at the 30-year company formerly owned by Graham and Robyn Lindsay all of whom are expected to retain their jobs under the new ownership structure. Contracts have been signed and settlement is set is due for completion on February 2, 2009.

The move coincides with the Sydney-headquartered company's first foray into standalone retailing with the opening of two flagship stores - one 120 square metre ladies outlet and one 30 square metre children's store - in Sydney's Chatswood Chase. Speaking exclusively to Ragtrader Seafolly CEO Anthony Halas said Sunburn had been Seafolly's largest domestic retail account with the brands' shared history spanning three decades.

"We've both been in business for roughly the same amount of time. Over the 30 years, first with my father [Peter] and then with myself, we've developed a very close business and personal relationship with the Lindsay family.

We've had a lot of discussions over the years and over the past two they've expressed a desire to pull back from the day-to-day running of the business and also allow the company to have the ability to grow and to venture where ever it needs to go." Halas said Seafolly intended retaining the status quo as far as Sunburn's corporate structure was concerned. This included retaining the Sunburn name and existing stockists - thought to include Seafolly competitors Jets, Moontide, Baku and Sunseeker. Sunburn was a "very, very good business" that was extremely well run, he said.

"We've got agreements in place that [confirms] Seafolly's share of Sunburn won't increase. They all see to understand that Sunburn is business as usual and we're there to support them as much as we ever have if not more.
"We might even consolidate supplies to our major retailers," he added.

Halas said the move pre-empted the brand's international retail expansion with a Seafolly store set to open in Dubai's One World shopping centre in November followed by further store openings across London, Canada and other "key" locations.

By Tracey Porter