Salvage of Zoe Foster Blake’s Go-To owner BWX goes down to the wire

Zoe Foster Blake’s skincare juggernaut, Go-To, has distanced itself from majority shareholder BWX Ltd as debt negotiations to save the embattled ASX-listed cosmetics group go down to the wire.

BWX, which makes and sells top-selling brands such as Sukin through Chemist Warehouse, Coles and Woolworths, as well as having a stake in Go-To, has been trying to refinance its loans with Commonwealth Bank since November. The bank was recently forced to lend BWX more money as the company’s financial situation worsened, and agreed not to act on loan breaches dating back to December.

This stay-of-execution on the loans ended last Friday, and BWX needed to come up with a new deal – with the bank or other financiers – by Monday or face collapse.

Go-To has been at pains to point out its independence from BWX.

“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,” the company said.

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

The group, founded by Foster-Blake, has just launched a retail presence in Europe via 220 stores operated by German cosmetics retailer Douglas.

“This is a key milestone for the Go-To business and our growing international community,” Go-To’s chief marketing officer, Leonie Faddy, said.

Go-To is profitable, and in a very different financial position from Purely Byron, the beauty brand co-founded by model and actor Elsa Pataky and backed by her husband, Hollywood star Chris Hemsworth.