The collapse of BWX is being called the largest sell-off in the Australian cosmetics industry. Last week, Retail Beauty reported that BWX Digital, the division including e-commerce platforms Flora & Fauna and Nourished Life, had been sold to The Future Collective, a new company created by Julie Mathers, the founder of Flora & Fauna, and HealthPost, the New Zealand-based online wellness retailer.
KPMG, the receivers and managers of the beleaguered parent company, have revealed plans to sell Sukin, BWX’s most valuable brand, by the end of May and will commence the sale proceedings shortly after. BWX acquired Sukin, one of Australia’s leading natural skincare brands in 2015 and it is mainly stocked by Coles, Woolworths, Priceline and Chemist Warehouse.
Sukin was BWX’s first significant buyout in the local skincare market and was one of the fastest-growing Australian skincare brands on the market at the time.
KPMG has also appointed the advisory firm Grant Samuel to seek out a buyer for BWX’s 50.1 per cent stake in Go-To Skincare. The brand operates independently of BWX and is not in administration.
Founded in 2014 by Zoe Foster Blake, the well-known beauty expert, author and media personality remains the brand’s creative officer.
BWX bought Go-To in 2021 for $89 million and the acquisition, tough trading conditions and other business woes kickstarted many of its current troubles.
The company went into voluntary receivership in April after losing the support of key investor, the Commonwealth Bank, which is seeking to recover more than $105 million in loans.
KPMG’s US arm will handle the sale of BWX’s American brands, Mineral Fusion and Andalou Naturals, both acquired in 2017. “We are pleased with the progress made so far in readying the US business for sale”, says David Hardy of KPMG Australia. “The Mineral Fusion and Andalou Naturals brands are very strong brands, and we expect there to be significant interest in the sale process”.
KPMG has also made solid progress in normalising BWX’s inventory, increasing production levels and stabilising the business.
“I want to thank our customers and suppliers for their ongoing support, as well as the BWX team who are continuing to go above and beyond in assisting receivers and managers”, noted Hardy.
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