After 5 months of moving the covenants, Commbank is putting BWX into receivership.
👉 Background: BWX is the Australian beauty and skincare company that owns brands like Sukin, Nourished Life, and also has a 50.1% stake in Zoe Foster Blake’s Go-To Skincare brand.
👉 What happened: Since November, BWX has been forced to plead with its lender, CommBank, to not enforce its debt covenants. But after 5 months of moving the covenants, Commbank is putting BWX into receivership.
👉 What else: Now, the administrators will look to sell off all brands that have value - including the majority stake in Go To Skincare.
💡Keep your customers close, but your investors even closer.
💡When Zoe Foster Blake sold a majority stake of her Go-To Skincare business to BWX, the deal was celebrated as a match made in heaven. Go To had a growing brand and quality product, and BWX had the moneybags and distribution.
💡Now, the administrator is playing matchmaker for the brand - they will be creating a forced marriage between Zoe Foster Blake’s brand and the highest bidder - which could even be Zoe Foster Blake buying back her stake.
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