Heavy blow to Zoe Foster-Blake as owners of her beauty brand reveal their business could collapse in 24 hours
- Cosmetics company BWX in financial turmoil
- The company owns Sukin and a majority stake in Go-To
Publicly-listed beauty company BWX has announced that administrators may be appointed if it cannot urgently refinance its business.
The company, which makes popular cosmetics like Sukin and has a majority stake in Zoe Foster-Blake’s Go-To brand, has stopped trading in its stock.
BWX has been trying to work out a settlement with lender, the Commonwealth Bank (CBA), but said on Monday that an agreement could not be reached.
“In light of recent communications from the company’s lender, the company’s board is considering how best to protect the interests of the company and the group as a whole in the absence of an agreed refinancing,” the company said in a statement. to the ASX.
The company was said to have violated the CBA’s loan covenants since November, but the bank extended a waiver until March 31.
Zoe Foster-Blake (pictured with husband and comedian Hamish Blake) founded Go-To in 2014
Ms Foster-Blake (left) has sold a majority stake in her cosmetics brand Go-To to BWX and can exercise a put option to sell the remaining 49 percent
“Until there is material certainty that the refinancing can be completed or the company can otherwise continue as a going concern, the board of directors has formed the opinion that a suspension of the company’s stock is appropriate,” said BWX.
The company is expected to make a public announcement on Tuesday whether alternative financing can be found or if administrators will be appointed.
BWX suffered a $335 million loss in fiscal year 2022, when mining magnate Andrew Forrest stepped in to save the company.
Ms. Foster-Blake’s Go-To has distanced itself from BWX, saying it is operationally independent, despite BWX owning 51 percent of the stock, which it bought for $89 million.
The remaining 49 percent of the shares could be sold to BWX by Ms. Foster-Blake and other investors for an estimated $59.2 million in 2024 – thanks to an option included in the original deal.
“Go-To operates as an independent entity and manages its own treasury, formulations, production and relationships with retailers,” Ms. Foster-Blake’s brand said.
“We have an independent Sydney-based team led by our CEO, Brad Dransfield, and have no financial, manufacturing or supplier relationships with BWX.”
“The Go-To business is in a strong position with double-digit growth to date.”
Go-To was recently launched in Europe through the German cosmetics chain Douglas.