Zoe Foster Blake backer BWX on the brink as CFO departs

Beauty retailer BWX, the majority owner of Zoe Foster Blake’s Go-To business, has lost its chief financial officer and once again delayed the release of its financial accounts, as it seeks additional debt funding to keep the business afloat.

BWX, the maker of Sukin and Mineral Fusion natural skincare brands, on Monday raised doubts about its ongoing survival after it said it was seeking fresh funding to restructure the business and was currently reliant on the support of its financier, the Commonwealth Bank, to keep the lights on.

The retailer, backed by billionaires Andrew and Nicola Forrest, has appointed consultancy group EY as its strategic adviser to help secure the debt funding.

“Until that process is further advanced and certainty of funding is secured, the board is unable to finalise the FY22 audited financial statements. The company confirms that its principal bank lender remains supportive,” BWX said.

BWX said the key parts of the audit issues – which have delayed the release of its accounts since August this year – have been finalised. This includes revenue recognition issues dating back to 2021, as well as the impairment of intangible assets from recent acquisitions, which includes 51.1 per cent of Foster Blake’s Go-To business for $89.9 million last year.

BWX said that CFO Efee Peell, has resigned with immediate effect to focus on health issues. It has appointed Birol Akdogan in an acting role until a permanent replacement is recruited.

The company’s shares last traded at 63c in August when it went into a trading halt as the group could not reach agreement with its auditors about its financial accounts.

BWX shares were dumped in July after it issued a downgrade and raised funds at a discount to its share price at the time to shore up its balance sheet.