BWX’s Australian operations enter voluntary administration

Wellness and beauty retailer BWX’s Australian operations have been placed in voluntary administration as the company struggles to combat inventory and working capital issues.

This afternoon, David Hardy, Gayle Dickerson, James Stewart and James Dampney of KPMG were appointed as receivers. They will take over the day-to-day operations of the company, which will continue to trade normally while its future viability is assessed.

That followed the appointment of Kate Warwick, Joe Hansell and Kelly Trenfield of management consulting firm FTI Consulting as administrators, earlier in the day. They intend to continue the directors’ search for a buyer for BWX’s stake in skincare brand Go-To which is a separate business and not under administration.

In an ASX statement, the company said a “range of issues have continued to impact the Australian operations of BWX – including customer destocking and inventory and working capital issues” – necessitating the appointment of administrators.

“The directors believe entering voluntary administration will help progress the restructuring process already underway with new management at BWX and give the company the best chance of future profitability.

The company’s operations outside Australia are affected by the receivership.

Last week, the company sought an “immediate suspension” from the trading of its shares on the ASX to focus on refinancing the business and continue to function.

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