The administrators of Napoleon Perdis, insolvency firm Worrells Solvency & Forensic Accountants, have announced that 28 of the makeup empire’s 56 stores have closed.
The closures were effective as of yesterday, Monday 4 February.
Administrator Simon Cathro said that assessments of each store’s performance had been undertaken over the weekend, factoring in past performance, location and “the right sizing of the business as a whole”.
“As result of this review, we have identified a number of stores that will be closed.
“This decision has not been taken lightly and we are aware that this will have an impact on employees and customers,” Cathro said.
Yahoo Finance contacted Worrells for comment on how many employees would be affected by the closures, but a spokesperson said that the information was not yet available.
However, Cathro indicated that staff would be paid wages up until their date of termination. Additionally, not all staff have been let go due to the closures.
“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 Napoleon himself and the business. No doubt this has contributed to the strong sales results over the weekend,” Cathro said.
The man himself, Napoleon Perdis, expressed his thanks to the staff who had “tirelessly gone above and beyond” and said the closures were “a necessary and anticipated step in the restructuring process”.
“And while it feels like a sad time, this is not goodbye, and it gives us the best opportunity to keep the business trading through the administration process.
“We’ll be back in a new, more dynamic and innovative way,” Perdis said.
These are the stores that have closed their doors:
According to the statement by Worrells, the appointment of the administrators had generated “significant interest” among potential buyers of the business, with the first meeting of creditors due to be held simultaneously in Sydney, Brisbane, Melbourne and Perth on Tuesday 12 February at 2:30pm.
Napoleon Perdis in liquidation
Just last Thursday 31 January, customers wanting to visit Napoleon Perdis stores were faced with closed doors.
The eponymously named Australian makeup brand Napoleon Perdis had collapsed, making it the latest victim in the Australian ‘retail apocalypse’.
Napoleon Perdis has a total of 76 stores and Myer concession outlets across Australia that was closed on Thursday for “stocktake” and reopened on Friday the 1st of February.
Worrells Solvency Accountants announced on Thursday that it had been appointed as voluntary administrators by directors of the cosmetics line.
Directors of Napoleon Perdis have been trying to sell the business for several months and are still hoping for a buyer to salvage and restructure the brand as the business continues to trade, the Worrells said in a statement.
“We expect the appointment will generate significant interest in the sale of the business,” said voluntary administrator Simon Cathro, who added that the brand was an industry trailblazer that had accumulated a number of awards and accolades.
“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,” Cathro said.
“It is one of the very few cosmetic brands that do not test on animals and remains a much-loved household name in Australia.”
The brand’s namesake and makeup artist Napoleon Perdis claimed the brand was “still in high demand from our customers” and “more innovative than ever”.
“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,” he said.
Napoleon Perdis expanded to the US for a time in 2004, but pulled out in 2015 after failing to make a profit.
The businessman has recorded losses to the tune of $1.6 million and $154,808 in 2014 and 2015 respectively, the Sydney Morning Herald has reported.
The final straw on Napoleon Perdis’ back is understood to be the arrival of Sephora and Australian soil.
The cosmetic brand has an exclusive agreement with Priceline, which has confirmed its commitment to the business through the administration process.
Australian menswear retailer Ed Harry announced it was entering voluntary administration just over two weeks ago, making Napoleon Perdis the latest victim in a long string of closures in the Australian retail landscape.
Barely a week after Ed Harry closed, sportswear manufacturer Skins filed for bankruptcy in the Swiss Court.
Luxury skincare brand Crabtree & Evelyn’s last day of trading is understood to be last Thursday, with all 12 stores to close by the end of the January.
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