On 31 January 2019

On 31 January 2019, the directors of Napoleon Perdis Group appointed Simon Cathro, Chris Cook, and Ivan Glavas of Worrells Solvency Accountants as voluntary administrators. All stores are continuing to trade as at the appointment date.

The Napoleon Perdis brand has a 24-year trading history and has 56 stores nationally. The first concept store in Sydney opened in 1995 and its brand retail presence extended overseas, predominantly in the US for over a decade; today its online store ships internationally.

The Napoleon Perdis directors have been trying to sell the business for several months. The current plan for the administration process is to see whether the business can be restructured through the process or a buyer is found while the business continues to trade.

Napoleon Perdis said, “The brand is still in high demand from our customers and is more innovative than ever, so by restructuring the business in this manner, we believe, puts it in a prime position to continue to evolve through continued trade or in a sale. My family and I are 100% committed to achieving the best outcome for all stakeholders. We are fortunate that throughout our business, we have staff and teams who have not only underpinned the business success, but who are our extended family. Their unwavering contribution will undoubtedly pave the way for the successful and strategic trade on. As we work towards our goals, we ask customers, suppliers and other interested parties to continue with their valued support of the brand”.

The Napoleon Perdis Group has an exclusive agreement with Australia’s leading beauty destination, Priceline, who have vouched its support of the business during the administration process. Napoleon Perdis launched in over 200 Priceline stores from August 2018.

Worrells will continue to trade all stores as usual and will undertake daily assessments of the stores throughout the administration process. The stores will be closed for stocktake on Thursday, 31 January and reopening for business on Friday, 1 February with an expected sale campaign occurring. Given the company’s extensive business structure, distribution network, stockist agreements, and personnel: establishing the financial position is a critical and complex process.

Worrells intend to seek buyers/investors through a sale of business process and key Napoleon Perdis team members will assist Worrells with this process.

Mr Cathro said, “The Napoleon Perdis brand is an iconic brand of Australia with substantial value and relevance within the cosmetic industry, both for Australian and international markets. Our understanding of the brand and its businesses has only strengthened our assessment of its potential business performance and profitability”.

Worrells assert that the objectives of the voluntary administration regime will effectively assist in bringing about the best possible outcome for the Napoleon Perdis brand, its employees, creditors, its loyal customer base, and the industry as a whole.

Mr Cathro said “We expect the appointment will generate significant interest in the sale of the business. The Napoleon Perdis brand touts pioneer achievements and accolades, which encompasses spearheading industry benchmarks as an educator, trailblazer, and award-winners. Its agility in evolving with a burgeoning movement that demands more organic ingredients and consciousness to animal cruelty and environmental impacts—is an enviable competitive edge that will attract many prospective investors/buyers. It is one of the very few cosmetic brands that do not test on animals and remains a much-loved household name in Australia.”

Any parties that wish to indicate their interest in investing/purchasing the business are invited to contact sydney@worrells.net.au, and brisbane@worrells.net.au. Worrells will frequently issue releases on the appointments’ status as it develops.

In the voluntary administration process, a first meeting of creditors is held within eight business days of the appointment, and a second meeting of creditors is usually held within 20 to 30 business days after the appointment. It is at the second meeting that creditors will determine the future of the Napoleon Perdis brand.

Worrells appreciates the impact the appointment has on affected parties. It will continue to proactively communicate at each juncture of the administration.

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

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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