The receivers of collapsed cosmetics group BWX (ASX: BWX) have formally placed their controlling stake in Zoe Foster Blake’s skincare brand Go-To up for sale, and confirmed a sale advisor for Sukin will be appointed by the end of the month.
As per an update from receivers KPMG, corporate advisory firm Grant Samuel will lead the sale process for BWX’s 50.1 per cent stake in Go-To which was founded by Foster Blake in 2014 and is not in administration or receivership as it is managed independently of the collapsed listed company.
Meanwhile, KPMG’s US office will lead the sale of BWX’s US business which is comprised of brands Mineral Fusion and Andalou.
KPMG Australia restructuring services partner David Hardy says the receivers and managers of the company - which fell into administration in early April due to mounting losses and struggling subsidiaries - have made ‘substantial progress in stabilising operations’.
“We are pleased with the progress made so far in readying the US business for sale. The Mineral Fusion and Andalou brands are very strong brands, and we expect there to be significant interest in the sale process,” Hardy says.
“We have made significant steps in normalising inventory and increasing production levels within the Australian operations.
“I want to thank our customers and suppliers for their ongoing support, as well as the BWX team who are continuing to go above and beyond in assisting the Receivers and Managers.”
Further, KPMG says it expects to mandate sale advisers for the Australian business, which consists predominantly of the Sukin brand, by the end of May 2023 and will commence the sale process shortly thereafter.
The update comes one week after BWX subsidiaries Flora & Fauna and Nourished Life were acquired by the former’s founder Julie Mathers alongside New Zealand-based online retailer HealthPost.
Though the terms of the deal to acquire Mathers’ Flora & Fauna and online retailer Nourished Life were not disclosed due to confidentiality agreements between the parties, the cross-border partners have established a new NZ-based company, The Future Collective, to own the two brands.
Included in the deal is IP, goodwill, websites, data and stock across both Flora & Fauna and Nourished Life, the latter having been originally founded by Irene Falcone who sold the business in 2017 before setting up non-alcoholic beer, wine and spirits superstore Sans Drinks.
BWX initially fell into voluntary administration on 4 April and appointed KPMG as receivers on the same day, with the company citing a ‘range of issues’ as impetus for the collapse of the company including “customer destocking and inventory and working capital issues necessitating the director’s decision to appoint administrators”.
Shares in BWX remain suspended as receivers seek buyers for the listed company’s subsidiaries.
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support