Firms: Clayton Utz (Napoleon Perdis Cosmetics)
Deal: Napoleon Perdis Cosmetics Group has been advised on its restructure following the voluntary administration of the company earlier this year. According to a statement from Clayton Utz, the restructure culminated in the successful sale of the business within three months of the administrators being appointed on 31 January.
Area: Restructuring and insolvency
Key players: Restructuring and insolvency partner Orla McCoy led the Clayton Utz team that worked alongside the administrators, Simon Cathro, Christopher Cook and Ivan Glavas of Worrells. She was supported by senior associate Mikhail Glavac, partner Geoff Hoffman and special counsel Sidney Tang, and partner Tim Webb.
Deal significance: Napoleon Perdis Cosmetics is described as a former top 500 private company in Australia, which generated sales of more than $100 million annually through 85 concept stores, 100 department store counters, 750 independent stockists, an online sales platform and “make up academy” beauty training schools.
“Having implemented an immediate operational restructure on appointment to prepare the group for sale, Worrells appointed Clayton Utz to conduct an expedited global sale process, which attracted 41 interested parties and culminated in KUBA Investments being the successful bidder. KUBA Investments is led by former Witchery and Marcs executive, Henry Lee, and Livia Wang, best known for her daigou consultancy providing Australian-based personal shoppers for Chinese consumers,” the statement from Clutz explained.
“KUBA Investment’s acquisition of the group was structured and implemented by way of Deed of Company Arrangement (DOCA) and a subsequent Creditors’ Trust, involving a transfer of 100 per cent of the shares in the company to KUBA. Although complex, the transaction structure meant the business was able to be continued seamlessly as a going concern – with employees retained, existing leases continued, and the ongoing engagement of Napoleon Perdis himself, as the group’s eponymous founder and creative genius.”
Commenting further on the deal, Ms McCoy said: “Rehabilitating ailing retail businesses can be a herculean challenge”.
“With the international reach and experience of the new owners in KUBA Investments, there is now an opportunity to reshape the Napoleon Perdis Cosmetics business for future challenges and opportunities in global markets.
“The rescue of a business as complex as this is an achievement of which the Administrators, and all of the contributors to that success, can be justifiably proud.”