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· Posted on
February 21, 2024

Purely Byron shows that throwing a celeb and a desirable location together isn't enough for successful brand

Purely Byron, a skincare brand owned by Elsa Pataky and husband Chris Hemsworth, collapses.

What's the key learning?

  • Signs of trouble in Purely Byron started showing up when its part owner BWX slashed the value of their stake down by $2.7 million.
  • Purely Byron approached administrators to work out if they are solvent, because being insolvent means that the company doesn't have enough money to pay its debts when they are due.
  • The business must appoint an administrator who is an independent professional that will step in and take full control of the company.

👉 Background: Purely Byron is a skincare brand Elsa Pataky started in June 2022. The business is also part owned by her hubby Chris Hemsworth and skincare brand BWX, which had a 47% stake in the business.

👉 What happened: In December last year, signs of trouble started showing up when BWX slashed the value of their stake down by $2.7 million.

👉 What else: By February 2023, Purely Byron approached administrators to work out if they are solvent. And it seems like the business is now in the hands of administrators.

What's the key learning?

💡 When a company doesn’t have enough money to pay its debts when they are due, it means that it has become insolvent. A company cannot continue to run while insolvent - this is highly, highly illegal.

💡 So the business must appoint an administrator to take over the business. An administrator is an independent professional who steps in and takes full control of the company.

💡 These experts will try get the business' affairs in order, repay the company’s debts, and then make some recommendations on how the company can move forward.

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