It was only five years ago that Seafolly and Megan Gale partnered up to create swimwear label Isola, but now Seafolly would like to cut ties with the model’s brand.
The dumping follows the news that L Capital Asia, the Asian arm of global luxury brand LVMH, gained a controlling 70 per cent stake in Seafolly late last year.
The private equity firm’s main goal during the acquisition was to lead Seafolly into global growth and build it into a lifestyle brand, but it doesn’t believe Isola has what it takes to go international.
“Under our new partnership, we need brands with a global reach,” Anthony explained. “We had issues with the trademarking of the Isola brand internationally, so sadly we have made the decision to discontinue that relationship.”
While Anthony says the group are looking at buying or creating a new brand to fill Isola’s gap, Megan is left feeling uncertain about her brand’s future.
“It is unusual for there to be such a big change within a brand when it is having great success season on season,” she told The Australian Financial Review. “Normally the case is the product is not selling, or stockists don’t want it any more. It’s very rare for it to be flourishing yet still be wound down,” she continued.
Isola will launch its Summer 2015 range this November, which will be the last collection until the brand’s future is decided. “It’s a shame to lose momentum, but the smart thing to do is rest the brand for at least a season to think about the best direction,” added Megan.
Megan will take full control of Isola in January 2016.