Crescent Capital evaluates sale of Tigerlily, appoints Deloitte
Key Points
- Crescent Capital has appointed Deloitte to help sell its swimwear business Tigerlily.
- Tigerlily posted about $20 million in revenue in the past financial year.
- Tigerlily operates 10 retail boutiques in Australia and distributes worldwide via 40 wholesale partners.
Sydney-based private equity firm Crescent Capital has appointed Deloitte to help sell its swimwear business Tigerlily, known for its bohemian prints and feminine styles, three years after emerging from voluntary administration.
Crescent Capital is seeking to capitalise on the increased interest in the beach apparel category following the sale of rival company Seafolly by its PE owners to an Asian strategic buyer in August, according to sources close to the firm.
The group was founded in 2000 by Johdi Meares, the former wife of James Packer, and sold to Billabong International. The brand became known for its patterned dresses and bikinis. Today, its offering is much wider including candles, knitwear and boots.
Private equity firm Crescent Capital is mulling a sale of Tigerlily, three years after VA. WireImage
Crescent bought Tigerlily from a then debt-laden Billabong for about $60 million in 2017. Tigerlily fell into voluntary administration in March 2020, just a few months after an ambitious rebranding.
A drop in foot traffic, travel restrictions and store closures due to the pandemic exacerbated already weak discretionary spending, hurting the brand. According to the deed of company arrangement lodged with ASIC, Crescent Capital put forward $1.75 million as part of the process where some of the secured creditors received 100¢ on the dollar while others recouped just 10¢, and others nothing at all. Tigerlily survived, but had a bumpy path until Travis Wright joined as its new CEO in late 2021.
Florida-born Ms Wright, former general manager of online fashion retailer Esther & Co, helped to reposition the group online, and joined the board along with Crescent’s Michael Alscher.
Under Ms Wright’s direction, Tigerlily has continued its move to eco-friendly fabrics including organic materials and natural fibres. The majority of its swimwear range is created from recycled plastic materials, and it uses fully recyclable hang tags and woven labels.
A flyer prepared by Deloitte is due to go out within weeks which will highlight Tigerlily’s position in the apparel space. Over the past few years, the group reduced its supply base by 40 per cent, and Tigerlily allows customers to pre-order items to minimise excess inventory.
Tigerlily posted about $20 million in revenue in the last financial year, and the owners expect double-digit growth to continue this year despite the tougher economic climate in retail. Tigerlily also lifted in-store average order value by 20 per cent over fiscal 2023, and has returned to profitability.
The label joins other smaller homegrown brands seeking buyers, with Olga Berg and Vine Apparel also hanging up the for-sale sign following hugely successful transactions this year including Zimmermann’s sale to Advent International and Bondi Sands to a Japanese conglomerate.
In January, Tigerlily increased its focus on the US e-commerce market, revamping its website and spending more time on social media campaigns, helping to smooth annual sales given it is predominately a summer business.
Ms Wright posted on LinkedIn that “for the first time in Tigerlily’s history we are a digital first business with the online channel contributing 44 per cent of revenue over FY23, resulting in a year of 23 per cent overall growth”.
Tigerlily operates 10 retail boutiques in Australia and distributes worldwide via 40 wholesale partners.
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