Former health and beauty company BWX has appointed advisory firm Greenhill to manage the sale of a cluster of the company’s brands, which includes popular natural skincare label Sukin and its new manufacturing facility in Clayton.
This decision follows the recent sale of two of BWX’s brands, Flora & Fauna and Nourished Life, to Julie Mathers and New Zealand-based online wellness retailer HealthPost.
“The problem was that the management team was not aligned,” a former staffer who chose to remain anonymous told Inside Retail.
“That was ultimately the problem. Sukin is a well-known brand with good financial metrics. There’s no reason that a business should fail if it’s being managed properly.”
One of the other big challenges of the company, continued the former staff, is that the company has taken on too much debt, and the business hasn’t been performing as well as it should.
Irene Falcone, founder of Nourished Life, questioned the strategy of selling Sukin in discount stores like The Reject Shop, suggesting consumers prefer accessing beauty products elsewhere.
“The consumer wants the product. Just make it and sell it to them. They don’t want to go to The Reject Shop for their beauty products,” she said.
“[They’re] trying to put their fingers in every pie. Just focus, pick a strategy and execute it.”
The appointment of Greenhill follows extensive enquires from a range of local and international interested parties following KPMG’s appointment as Receivers and Managers in April.
“Thanks to the support of BWX team members, customers, and suppliers, we have made significant headway in normalising operations,” said David Hardy, restructuring services partner at KPMG Australia
“We can now focus on finding a new home for BWX’s much-loved products and expect significant interest given the strength and popularity of the Sukin brand.”
The appointment comes after the receivers and managers appointed Grant Samuel to advise the sale of the company’s shareholding in Go-To skincare and appointed KPMG US to lead the sale of the BWX US operations earlier this month.
“The sale of both the BWX US operations and the shareholding in Go-To have commenced with strong interest shown,” said Hardy.
Despite once being valued at $860 million, BWX’s current worth is estimated at around $36 million, following its struggles with inventory and working capital issues, prompting the decision to enter voluntary administration in April.