Zoe Foster Blake’s Go-To for sale after beauty business BWX collapses

Zoe Foster Blake sold a controlling stake in her cult skincare company for $89 million in 2021. Now, the company is searching for a new owner.

Beauty and wellness business BWX, which owns Zoe Foster Blake’s Go To skincare company, has collapsed after it reported a $100 million loss for the first half of the financial year.

The cosmetics brand is searching for a buyer for Go-To, which it owns a 50.1 per cent controlling stake, after Ms Foster Blake sold it to the company in 2021 for $89 million.

Last month BWX, which owns other brands such as Sukin that it sells through Chemist Warehouse, Coles and Woolworths as well Nourished Life and Flora and Flauna, revealed ugly results that included overall revenue diving by 18.4 per cent to $79.7 million.

The group is also backed by mining billionaires Andrew and Nicola Forrest.

But on Monday, it fell into voluntary administration with FTI Consulting appointed to handle the matter led by Kate Warwick.

Zoe Foster Blake’s owner is looking for a buyer for the business. Picture: Instagram

The collapse came after it lost the support of its bank with Commonwealth Bank declining to extend the terms of its loan with BWX for a fifth time.

“In light of recent communications from the company’s lender, the company’s board is considering how to best protect the interests of the company and the group as a whole in the absence of an agreed refinancing,” the company said.

The embattled business had been impacted by “customer destocking and inventory and working capital issues”, according to BWX’s statement to the ASX.

“The directors believe entering voluntary administration will help progress the restructuring process already under way with new management at BWX and give the company the best chance of future profitability,” it said.

Elsa Pataky’s beauty brand collapsed last month. Picture: Celeste Humphrey

BWX’s financial difficulties had triggered the collapse of Purely Byron last month – a beauty brand co-founded by model and actor Elsa Pataky and her husband, Hollywood star Chris Hemsworth – which only launched its first products a year ago.

However, the company revealed it had been actively looking for a buyer for Go-To to take over its shareholding and the sale process would continue outside of the administration.

“Go-To is run and managed independent of BWX, with a wholly separate treasury function as well as separate cash flow management including accounts payable,” it said.

“Go-To has its own independent team across all departments of the business and are based in its own offices in Sydney. Go-To does not utilise any BWX manufacturing or development capabilities and proudly supports its retail partners via its sales and retailer management team out of Sydney.”

Go-To Skincare sunscreen. Picture: Supplied

Zoe Foster Blake’s business was recording double digit growth. Picture: Instagram @zotheysay

Ms Foster-Blake, and other investors, have the choice to sell their 49.9 per cent stake to BWX for $59.2 million cash as early as next year.

Go-To added the business was in a strong position with year-to-date performance seeing double-digit growth and it had recently launched in 220 stores operated by German cosmetics retailer Douglas.

BWX, a $42 million company, had previously blamed the dive in revenue on its retailers stocking less products, spending money on its Victorian manufacturing facility and out of stock issues both in Australia and internationally.

The company said its operations outside of Australian would not be impacted such as US brands Mineral Fusion and Andalou Naturals.