Beauty retailer falls victim to market conditions


Napoleon Perdis has long been considered to be the king of Australian beauty — but today, it seems his empire is crumbling.

The cult makeup chain’s 56 Aussie stores are now closed for stocktake, and Simon Cathro, Chris Cook and Ivan Glavas of Worrells Solvency Accountants have been appointed as administrators.

Stores will open again tomorrow with items expected to go on sale.

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The company began when Sydney makeup artist and businessman Napoleon Perdis started his own studio in the city’s inner west in 1992, before launching his own range which were sold through his Paddington store in 1995.

The range expanded into department stores and ended up expanding internationally, including into the US, where it has enjoyed success for over a decade.

In a statement released by administrators today, Mr Perdis acknowledged the “restructure” — but did not reveal details behind it.

“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 statement reads.

“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. 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 Priceline, with the pharmacy chain vouching its support of the business during the administration process.

Napoleon Perdis launched in over 200 Priceline stores in August 2018.

Worrells intend to seek buyers or investors through a sale of business process, and it is not known how many employees could potentially be affected — although hundreds of jobs are believed to be at risk.

The shocking news comes just days after sportswear manufacturer Skins announced it was on the brink of collapse after applying for bankruptcy in a Swiss Court, with chairman Jaimie Fuller confirming the news and revealing his devastation in a lengthy public statement.

Earlier this month, Aussie menswear retailer Ed Harry was also revealed to have gone into voluntary administration.

In the short-term the South Australia-based clothing business will immediately embark on a clearance sale of existing merchandise to maximise options for the business.

Administrator KPMG said Ed Harry gift cards will be honoured for one month on a dollar-for-dollar basis only.

Those follow a string of significant closures in 2018 — a horror year for Australian retailers.

Plus-size womenswear brand Maggie T became the first high-profile Australian retailer to enter administration in 2018 after announcing it would close in early January.

Not long after, Australian footwear, clothing and accessories label Diana Ferrari revealed “at least four” of its 17 retail stores would be rebranded with the rest to close, and six clearance outlets to remain open.

In the same month, outdoor adventure gear company Mountain Designs made the “difficult decision” to close one in three stores in 2018.

Shops at Joondalup, Wagga Wagga, Toowong and Dubbo closed on January 7 followed by branches at Cannington, Bendigo, Toowoomba and Wollongong on January 10, with others at Pacific Fair, Ashmore, Bunbury, Moorabbin and Warringah also shutting.

Next came Gap, which quietly bowed out of the Australian market in early February.

The US fashion giant was brought to Australia by luxury goods retailer Oroton — which narrowly avoided its own collapse late last year.

Soon after, cosmetics brand Avon announced it would depart from Australia and New Zealand “by the end of 2018”, leaving the company’s 220 staff and more than 21,400 representatives facing an uncertain future.

In early May, fashion retailer Esprit revealed it would close all 67 of its loss-making Australia and New Zealand stores as the Hong Kong-listed company shifted its focus to more profitable regions.

Toy giant Toys ‘R’ Us finally closed down for good on August 5 after going into voluntary administration in May.

In July, administrators revealed all Toys ‘R’ Us and Babies ‘R’ Us stores across the country would fold, with around 700 jobs lost.

The announcement followed the failure of Toys ‘R’ Us in the US in March.

Other big names that folded last year include Shoes of Prey, Max Brenner, Roger David and Laura Ashley.

Continue the conversation @carey_alexis | alexis.carey@news.com.au





Source link Finance News Australia

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