A retail chain in the midst of voluntary administration has had half of its store network closed down with the stroke of a pen, citing a need to “rightsize” the business for sale.
Administrator Worrells Solvency & Forensic Accountants announced that 28 of the 56 Napoleon Perdis stores had closed their doors permanently as of Monday (4 February 2019), just three days after announcing a storewide sale to clear stock.
The full list of stores that have closed is listed below.
The 30 per cent off sale reportedly generated significant customer engagement and sales turnover over the weekend.
Administrator Simon Cathro said in a statement that the store closures were aimed at “rightsizing” the retailer for a potential sale, suggesting that such an outcome is a real possibility.
“As expected, the appointment has already generated significant interest in the sale of the business. It is clear from those discussions that their interest is piqued through the voluntary administration’s ability to rightsize and restructure the Napoleon Perdis Group,” he said.
Mr Cathro said that the closures followed a detailed stocktake and assessment of each store to determine past performance, location value and contribution to the overall business.
“This decision has not been taken lightly and we are aware that this will have an impact on employees and customers,” he said.
“These staff will be paid their wages owing up to the date they are terminated. Some staff have been offered other roles within the Napoleon Perdis Group. We have been extremely pleased with the high level of support the staff have provided both to [owner and founder] Napoleon [Perdis] himself and the business.”
The company copped heat on social media after suspending gift vouchers and rewards vouchers on 4 February. That suspension was subsequently lifted again two days later.
Customers had complained on the retailer’s Facebook page about giving or receiving gift vouchers for Christmas that were deemed useless by the decision.
Others, however, offered sympathy for its namesake founder after a television interview, and offered their continued support of the brand.
“Good luck, mate. I can see the stress in your body language on the Morning Show just now. Take it easy; hope you survive this problem. Can someone recommend what I can buy today for myself?” wrote one.
“Great interview on Morning Show! Well done xx,” added another.
The first creditors meeting will be held next Tuesday, 12 February, which will occur simultaneously in four cities: Sydney, Melbourne, Brisbane and Perth.
Napoleon Perdis, a family-owned beauty and cosmetics retail chain, went into voluntary administration at the end of January, after unsuccessful attempts by its directors to facilitate a sale of the business.
Napoleon Perdis stores that have now closed
Chapel Street, Melbourne
Hay Street, Perth
Adam Zuchetti is the editor of My Business, and has steered the editorial direction of the publication since the beginning of 2016. Before joining My Business, he worked on fellow Momentum Media titles The Adviser and Mortgage Business.
The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Adam has written across both consumer and business titles, including for News Corp Australia and Domain.
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