White knights lob offers for makeup retailer Napoleon Perdis

The voluntary administrators for Napoleon Perdis are crunching the numbers on formal offers to rescue the makeup brand.

THE voluntary administrators for Napoleon Perdis are crunching the numbers on potential offers to rescue the Australian makeup brand.

Cosmetics entrepreneur Napoleon Perdis. Picture: AAP/Julian Andrews

Napoleon Perdis called in administrators from Worrells Solvency and Forensic Accountants in late January after unsuccessfully trying to sell the business for the past 18 months.

The administrators have closed 28 stores across the country, including outlets at Pacific Fair on the Gold Coast, Toowoomba, Browns Plains, Cairns and in Mackay in Queensland. Twenty seven stores remain open, including six in Queensland.

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Simon Cathro from Worrells said “a number of formal offers have been received”.

Over the next two weeks his firm would consider the offers and their associated terms.

“The administration is still in the restructuring phase to effect optimal business

profitability,” Mr Cathro said. “The administration’s prospects have been promising from the outset and the success of expression of interest campaign is clear evidence of the brand’s value and market relevance.”

The directors of the makeup retailer, including founder Napoleon Perdis, have also indicated that they will put forward a proposal for a Deed of Company Arrangement (DOCA). Picture: AAP Image/Richard Waugh

The directors of the makeup retailer, including founder Napoleon Perdis, have also indicated that they will put forward a proposal for a Deed of Company Arrangement (DOCA).

Worrells expects to receive the DOCA in coming days.

“If a proposal for a DOCA is received, the administrators will consider its terms and compare it with the offers for the sale,” Mr Cathro said.

“Our responsibility as administrators to the voluntary administration is to judiciously assess all options available to creditors and make our recommendations for creditors to vote on at the second meeting, which may be to recommend the DOCA or one of the investor/buyer offers.”

Worrells described a DOCA as a formal agreement between a company and its creditors and

any other relevant third parties to satisfy company debts.

Last week, Worrells advised that the administrators were ordering more Napoleon Perdis stock

to meet current and future demand, and that the Napoleon Perdis partnership with Priceline is

continuing to thrive.

“We are delighted by all the industry interest, trade performance, partnership and creditor support and the continued enthusiasm of the Napoleon Perdis teams,” Mr Cathro said.