Administrator FTI Consulting takes over at skincare group BWX

BWX has retained control of Zoe Foster Blake’s Go-To brand but appointed administrators to the rest of the ASX-listed skincare group’s troubled Australian business.

BWX sells Sukin, Andalou and Mineral Fusion brands.

The board of the Forrest family-backed BWX has tipped the troubled Australian operations of the ASX-listed skincare group into voluntary administration but kept control of the Zoe Foster Blake founded Go-To business.

The company said the operations of BWX outside of Australia and Go-To were not included in the administration which comes after the company was unable to refinance its loans with the Commonwealth Bank.

Shares in BWX – which also sells Sukin, Andalou and Mineral Fusion brands – were suspended on March 24 and last traded at 20c.

The Forrest family’s Tattarang Venture’s became a substantial shareholder in BWX in June and holds just over 20 per cent of the stock which BWX said would remain suspended following the appointment of Kate Warwick, Joe Hansell and Kelly Trenfield of FTI Consulting as administrators.

Author and entrepreneur Zoe Foster Blake founded the Go-To brand.

“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,” BWX said late Monday.

The directors said they believed appointing administrators would help progress the restructuring process already underway with new management at BWX and give the company the best chance of future profitability.

“The directors will work with the administrators to ensure a positive outcome in the administration, with employees and customers remaining a top priority,” they said.

“The administrators intend to trade the Australian operations of BWX on a business-as-usual basis.”

In its interim results in February, BWX posted a bottom-line blowout, reporting a $100.8m loss for the six months to December 31, up from a $5.4m loss in the previous first half while revenue slumped 18.4 per cent to $79.7m.

Billionaire Andrew Forrest’s Tattarang business is a major shareholder in BWX. Picture: AAP

The BWX directors said they have been actively working to find a compatible buyer for BWX’s 50.1 per cent shareholding in Go-To.

“The administrators intend to continue this sale process,” the company said.

Ms Foster-Blake and other investors own the remaining 49.9 per cent stake in Go-To.

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

“Go-To has its own independent team across all departments of the business and are based in its own offices in Sydney,” BWX said.

“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.”

BWX’s chief executive, chief financial officer and chairman have all left the business in the past year.