The Australian operations of BWX entered Voluntary Administration as the company deals with mounting losses and struggling subsidiaries, appointing FTI Consulting as voluntary administrators.
WHO: Founded in Melbourne in 2013, BWX Limited is a developer, manufacturer, distributor, and marketer of branded skincare and haircare products, emphasizing the natural beauty and personal care market segment. The vertically integrated house of brands includes Sukin, Andalou Naturals, USPA, Mineral Fusion, Nourished Life, and Flora & Fauna.
IN THEIR OWN WORDS: The company said in a statement, "A range of issues have continued to impact the Australian operations of BWX, including customer destocking and inventory and working capital issues necessitating the Director’s decision to appoint administrators. 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.”
DETAILS:
- The Australian operations of BWX entered voluntary administration, with the Board of Directors appointing Kate Warwick, Joe Hansell, and Kelly Trenfield of FTI Consulting as voluntary administrators, assuming day-to-day control of the company.
- In February, BWX shared its financial results for H1 FY23, which indicated the company was in trouble. It reported a revenue of AUD$79.7 million, a decline of 18.4 percent, and an EBITDA loss of AUD$29.7 million, a stark contrast to H1 FY22’s AUD$5.4 million profit. The Group also recorded significant one-off costs related to restructuring initiatives and non-cash impairments, leading to a loss after tax of AUD$100.8 million.
- The operations of BWX outside of Australia and the Go-To business are not included in the administration.
- BWX acquired a 50.1% controlling stake in Zoe Foster-Blake's Go-To skincare company for $65 million (AUD$89 million) in 2021. Go-To is run and managed independently and not included in the administration, and BWX is actively working to find a compatible buyer for its stake in the business.
