By Colin Kruger
The Commonwealth Bank appointed receivers to the collapsed BWX business on Tuesday morning, as Zoe Foster Blake attempts to buyback control of her Go-To business for a fraction of the $89 million she was paid in 2021.
The ASX-listed cosmetics group appointed administrators on Monday evening over the Australian business.
Zoe Foster Blake is attempting to buy back control of Go-To from the failed cosmetics group BWX Ltd, for a fraction of $91 million it paid in 2021.Credit: James Brickwood
BWX shareholders, including billionaire Andrew Forrest, will likely be wiped out by the collapse. Forrest’s investment group Tattarang acquired $36 million worth of shares less than a year ago, giving it a 19.9 per cent stake.
CBA appointed receivers from KPMG to recover its $100 million secured loan on Tuesday. The bank ensured BWX’s collapse when it declined to extend waivers on its debt covenants beyond Friday, March 31, and the company failed to find fresh backers.
In a statement to the ASX, BWX said KPMG Australia’s David Hardy, Gayle Dickerson, James Stewart and James Dampney have been appointed receivers over the Australian business and have taken over day-to-day control of the business.
This includes its Sukin, Andalou Natural and Mineral Fusion brands, but not Foster Blake’s Go-To or the US business.
KPMG’s Hardy said: “As receivers, our initial focus will be on stabilising the operations of these much-loved brands, before commencing an orderly sale process. We will be working with all stakeholders, including employees, suppliers, partners and customers, to maximise the outcome for all parties.”
The receivers said employee entitlements are not at risk and will be paid normally through the receivership process.
BWX had been in the process of organising the sale of assets, including its 50.1 per cent stake in Go-To, with a group led by Foster Blake, one of two parties bidding for the assets.
BWX paid $89 million for its Go-To shares in December 2021. Foster Blake and her management team have the option of selling the remainder of their shares to BWX for $59.2 million cash as early as next year. It is one of the liabilities that weighed on the share price of the cash-strapped BWX.
BWX shareholders, including billionaire Andrew Forrest, will likely be wiped out by the collapse.Credit: Bloomberg
Foster Blake had offered to buy back the majority stake for as little as $20 million, according to sources involved in the negotiations. Go-To declined to comment.
The BWX board had appointed the administrators, led by FTI Consulting’s Kate Warwick, on Monday to keep BWX trading and continue the sales process for its Go-To stake and the US business.
“A range of issues has 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 BWX board said Monday evening in a statement to the ASX.
“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. The directors will work with the administrators to ensure a positive outcome in the administration, with employees and customers remaining a top priority.”
The administrators are expected to continue the sales process of the Go-To and US businesses.
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