CBA walks away from Zoe Foster Blake’s Go-To owner BWX

Channel stuffing involves retailers inflating sales by “selling” more products to their distributors than they can readily sell to consumers.

BWX has suffered a cash drain as its retailers sell the backlog of goods in their distribution centres, which meant it did not get any fresh cash for these already-paid-for sales.

Foster-Blake’s Go-To has touted its operational independence from BWX which paid $89 million for 51 per cent of the business in 2021. Foster-Blake, and other investors, can choose to sell their 49.9 per cent stake to BWX for $59.2 million cash as early as next year.

“Go-To operates as an independent entity, managing its own treasury, formulations, manufacturing and retailer relationships. We have an independent Sydney-based team led by our CEO, Brad Dransfield, and no financial, manufacturing or supplier affiliations with BWX,” Go-To said.

“The Go-To business is in a strong position with year-to-date performance seeing double-digit growth.”

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Go-To has just launched a retail presence in Europe via 220 stores operated by German cosmetics retailer Douglas.

BWX’s financial woes triggered the collapse of Purely Byron last month – the beauty brand co-founded by model and actor Elsa Pataky and backed by her husband, Hollywood star Chris Hemsworth.

BWX’s cash shortage woes meant it could no longer fund the venture, which launched its first products less than a year ago and was years away from breaking even.