A major Australian beauty company, which owns Zoe Foster Blake’s popular Go-To skincare brand, has collapsed after reporting a $100 million loss for the first half of the financial year.
Embattled cosmetics company BWX, which has ownership stakes in multiple major beauty brands including Go-To, confirmed the company has entered voluntary administration as of Monday.
The beauty and wellness company said it is actively searching for a buyer for its 50.1 per cent controlling stake of Go-To after Foster Blake sold the company for $89 million in 2021.
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BWX, which is behind popular labels Sukin, Mineral Fusion and Flora & Fauna, said its operations outside of Australia and Go-To were not involved in the administration process.
Media personality Foster Blake’s Go-To brand is independently managed and run and its sale will continue outside of administration, BWX confirmed.
The retailer cited “customer destocking and inventory and working capital issues” as reasons for its demise, according to its statement to the ASX on Monday.
“The directors believe entering voluntary administration will help progress the restructuring process already underway with new management at BWX and give the company the best chance of future profitability,” it said.
“The directors will work with the administrators to ensure a positive outcome in the administration, with employees and customers remaining a top priority.”
FTI Consulting’s Kate Warwick, Joe Hansell and Kelly Trenfield have been appointed administrators and intend to keep the company trading on a “business-as-usual basis”, BWX said.
In a brief statement to the ASX on Tuesday, the company said KPMG Australia’s David Hardy, Gayle Dickerson, James Stewart and James Dampney had been appointed as receivers.
“The receivers have now assumed day-to-day control of the Australian operations of the BWX Group,” it said.
“The BWX Group will continue to operate as normal while the receivers undertake an assessment of the business.”
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