Scott Langdon and Rahul Goyal, administrators of the Seafolly group, today announced the purchase of prominent Australian swimwear brand Jets.
Langdon said the purchase made strategic sense.
“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.
"The combination presents clear and material synergies around design, wholesale and supply chain.”
Jets is part of the PAS Group which was put into administration in May.
Jets and other companies in the group were put on the market soon afterwards.
Negotiations began while the Seafolly administrators were conducting a sale process for the Seafolly Group, Langdon said.
"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.”
Langdon said the Jets business would be mainly a wholesale and e-commerce offering for the time being.
The purchase was sealed over the weekend.
The acquisition is announced a week after the overwhelming vote by Seafolly creditors to accept a Deed of Company Arrangement (DOCA) that will save the business.
The DOCA was recommended by the Administrators because it offered the best return to creditors.
When executed, the DOCA returns Seafolly to its previous owners.