On 28 March 2019

Worrells Solvency & Forensic Accountants have issued their report to creditors for the second meeting of creditors of Napoleon Perdis Cosmetics Pty Limited scheduled for Monday, 8 April 2019.

Voluntary administrators, Simon Cathro, Chris Cook, and Ivan Glavas have completed their investigations and recoveries; and with the support of employees, resellers, and other key stakeholders they were able to trade the business profitably during the administration period, while undertaking critical steps to right size the business. Contemporaneously, the administrators conducted an expedited and intensive global sale process, looking to identify a potential buyer for the business with the goal of allowing it to continue as a going concern.

Mr Cathro said, “We received a lot of interest in the business but ultimately have negotiated terms that will enable the business to continue, with KUBA Investments Pty Ltd. KUBA is an Australian private investment and advisory group, led by Livia Wang and Henry Lee, which undertakes and manages retail-specific investments”.

Livia Wang is Managing Director of Access Brand Management a global brand management company headquartered in Sydney. Henry Lee is a retail executive and has managed a number of successful Australian brands including Witchery and Marcs.

Ms Wang said, “KUBA’s investment will ensure loyal customers can continue to purchase Napoleon Perdis in over 700 store fronts and keeps more than 250 existing staff members in employment. We will leverage off the restructure undertaken by Worrells and continue to work closely with Napoleon, and the teams, to build the brand both in Australia and overseas”.

Worrells said KUBA’s proposal for the business had been structured as an offer to creditors in the form of a Deed of Company Arrangement (DOCA), involving a consensual transfer of the shareholding in the company to KUBA. The purpose and benefit of such a DOCA structure allows an efficient and seamless transition to the new owners without the need for extensive novation or assignment of contracts or transfers of employees.

In addition, Worrells estimate that the proposed DOCA and the creditors’ trust will result in a better return to creditors of “this prominent and iconic Australian brand” than would result if the company was liquidated.

At the upcoming meeting, creditors will be given the opportunity to consider the DOCA and to vote on the company’s future. If creditors wish to support the continuation of the business under its new proposed ownership, they will have the option to vote in favour of the DOCA.

Mr Cathro said, “As administrators we have undertaken significant investigations into the affairs of the company and weighed up those findings against the benefit that this DOCA and the associated creditors’ trust provides. The benefit of the DOCA is that it allows the business to continue to exist, this being a primary objective of the voluntary administration process.

Worrells’ report recommends that creditors vote to accept the DOCA proposed by the third party, KUBA.”

Mr Cathro stated, “We are pleased that Napoleon and Soula-Marie Perdis have indicated their support for the DOCA and have agreed to a transfer of their shares to KUBA as part of that proposal. The DOCA will also see Napoleon and Soula-Marie Perdis continue to bring their creative expertise to the business. If approved by creditors, the DOCA will see them continue in roles that will ensure the brand continues to thrive and grow under the new ownership structure.

As administrators, we are extremely thankful for the significant support that all the key Napoleon Perdis stakeholders have provided. In particular, Priceline and Terry White have embraced the new owners’ and administrators’ vision for the future of this business. Finally, we would like to again thank the company’s employees for their unwavering support during the process. The uncertainty of a voluntary administration has been most difficult on them. Their loyalty and commitment to the restructuring process has been a key factor in enabling the business to continue.”

Worrells has 27 offices nationally and 29 partners, across Qld, NSW, ACT, Vic, SA, and WA. Worrells has been providing solvency management, insolvency administration, and forensic investigation services for over 45 years.

—ENDS—

Contact:
Simon Cathro
Partner, Worrells Sydney
simon.cathro@worrells.net.au 

 

Media Inquiries for KUBA Investments:
Rick Willis
Network Four
M: +61 411 839344
E: rick@networkfour.com.au 

Simon Cathro

Simon joined Worrells Sydney in November 2015 as a Partner of the firm. Simon has over 21 years of insolvency and restructuring experience specialising in, insolvency reconstructions, corporate structure design, investigating accountant reports and expert witness investigations.

T: (02) 9249 1208 E: Simon.Cathro@worrells.net.au

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