An Australian beauty and cosmetics retail chain has fallen into voluntary administration, despite the company stating that it is “still in high demand from our customers”.
Napoleon Perdis operates a chain of 56 stores in Australia, having first launched as a concept store in Sydney in 1995. It had expanded overseas, largely into the US, for a number of years, before focusing its international operations online.
Worrells Solvency and Forensic Accountants issued a joint statement with the retailer on Thursday (31 January) announcing that it had been appointed administrator, with plans to try and sell the business.
All of its stores will continue to trade for the time being, although they had been closed on 31 January as part of a national stocktake.
The appointment follows unsuccessful attempts by Napoleon Perdis directors to achieve a sale in recent months.
“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,” the company’s founder and namesake, make-up artist Napoleon Perdis, said in the statement.
“My family and I are 100 per cent 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.”
He added: “As we work towards our goals, we ask customers, suppliers and other interested parties to continue with their valued support of the brand.”
As well as operating its own store network, the Napoleon Perdis Group also has an exclusive supply agreement with Priceline, with its products stocked in some 200 Priceline stores.
The pharmacy and cosmetics chain has pledged to continue supporting its supply partner during the administration process, according to Worrells.
Worrells partner Simon Cathro, who together with Chris Cook and Ivan Glavas will oversee the administration, said that the “iconic brand” is hoped to generate “significant interest” once the restructure is complete.
“The Napoleon Perdis brand touts pioneer achievements and accolades, which encompasses spearheading industry benchmarks as an educator, trailblazer and award winners,” he said.
“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.”
According to its website, Mr Perdis established the retailer bearing his name together with his wife Soula-Marie and brother Emanuel. The business ran alongside his public appearances as a make-up artist, author and educator, as well as host of his own American reality television show Get your face on with Napoleon Perdis.
The retailer’s fate will be determined at a second meeting of creditors, to be held within 20 to 30 business days (i.e. March 2019).
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.