ANZ Bank engaged financial experts to conduct a report on Seafolly on January 9.
ANZ Bank, a secured creditor owed $12.5 million, appointed KordaMentha to provide a report on the financial situation of Seafolly Group, consequences of insolvency and alternative courses of action.
The engagement occurred prior to COVID-19 lockdowns, from January 9 to April 12.
On April 23, KordaMentha was contacted by Seafolly director Onrej Ruzicka to organise a discussion regarding its financial position.
Over the course of several months, commencing with a meeting with Ruzicka on April 28, a series of communications and meetings between the two parties continued to assess its finances and operations.
On June 15, administrators were contacted by the director of Seafolly Group to act as voluntary administrators.
In a statement to the market earlier this week, KordaMentha administrators Scott Langdon and Rahul Goyal revealed a sale of business is on the cards.
"Given the quality of the brand and its reputation, there will inevitably be a high level of interest in purchasing the business," Langdon said.
Seafolly has a retail network of 44 stores throughout Australia and 12 stores overseas.