Australian beauty brand Napoleon Perdis faces shock collapse
Napoleon Perdis cosmetics customers are expected to flock to massive sales around the country after the homegrown brand was placed in voluntary administration.
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Fans of cosmetics empire Napoleon Perdis are expected to flock to massive sales around the country after the homegrown brand was placed in voluntary administration.
The high-flying make-up chain closed its doors at 56 stores for a huge stocktake after calling in solvency accountants to either resell or restructure the business.
Napoleon Perdis, 48, launched his homegrown range of cosmetic products in Paddington in 1995 and became successful overseas – but tough retail conditions have made it hard for the chain to find a new buyer.
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The eye-catching cosmetic stores will reopen for business on Friday with an “expected sale campaign occurring” and continue to trade as normal until a buyer is found, Solvency accountants Worrells said.
Napoleon Perdis directors had been trying to sell the business for several months.
“The current plan for the administration process is to see whether the business can be restructured through the process or a buyer is found while the business continues to trade,” Worrells said in a statement.
No details were given about how the chain might be restructured, or the immediate reasons behind the sale, but Sydney publicist Roxy Jacenko, who has previously contracted with the firm, said retail conditions have been tough in recent times in Australia.
“It just shows what a volatile industry it is and how tough retail is,” she said.
“Unfortunately he won’t be the first or the last. It is very said because Napoleon is such a pioneer. He brought colour to Australian cosmetics and people started experimenting.
“He is a very talented artist and had a vision which grew big but when it gets big it’s even harder to manage.
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“It’s a very tough climate no matter what, when at the end of the day there are so many options out there.
“We are a small country and we are inundated with brands. We are spoiled for choice. I hope he’s able to trade through it because the product is beautiful.”
The recent arrival of the world’s largest beauty retailer Sephora is also understood to have affected sales.
Under the terms of the voluntary administration process, a first meeting of creditors will be held within the next eight business days and a second meeting of creditors is usually held within 20 to 30 business days after the appointment.
It will be at the second meeting that creditors will determine the future of the Napoleon Perdis brand, Worrells Sydney partner Simon Cathro said.
In recent times several Australian retailers have gone into administration including menswear chain Roger David and the local branch of Laura Ashley.
Napoleon Perdis recorded a $1.6 million loss in 2014 and a $154,808 loss in 2015.
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