Napoleon Perdis closes half its stores

4 February 2019, Written by Business News Australia

Napoleon Perdis closes half its stores

The voluntary administrators who have taken over beauty retailer Napoleon Perdis have noted positive impacts from the early stages of restructuring, as the iconic brand 'right-sizes' its store profile and presence Australia-wide.

However, despite the relative success of a weekend sales campaign that "delivered very strong results that surpassed any forecasts", administrators from Worrells Solvency & Forensic Accountants have decided to close 28 of the group's 56 stores nationwide.

"The administrators have undertaken an assessment of each store over the weekend, factoring in past performance, the right sizing of the business as a whole and the location," says Worrells' Simon Cathro, who is undertaking the task along with Chris Cook and Ivan Glavas.

"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.

"These staff will be paid their wages owing up to the date they are terminated."

Related story: Cosmetics empire Napoleon goes into administration

Cathro adds some staff have been offered other roles within the Napoleon Perdis Group, and that administrators have been "extremely pleased" with the high level of support from staff to Perdis himself and the business.

"No doubt this has contributed to the strong sales results over the weekend," he says.

"I want to say a big thank you to the staff who have all tirelessly gone above and beyond during this challenging time," says company founder Napoleon Perdis.

"Today's closures are 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."

The first meeting of creditors is due to be held simultaneously on Tuesday, 12 February across four locations: Sydney, Brisbane, Melbourne, and Perth at 2.30pm AEDT.

"As expected the appointment has already generated significant interest in the sale of the business," says Cathro.

"It is clear from those discussions that their interest is piqued through the voluntary administration's ability to right size and restructure the Napoleon Perdis Group."

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Business News Australia

Author: Business News Australia





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