Administrators for collapsed cosmetics retailer Napoleon Perdis have closed half of the chain’s 56 stores in a bid to make the business more appealing to potential buyers.
The eponymous chain, founded by Australian makeup mogul Napoleon Perdis, appointed administrators from Worrels last week.
Administrators remain confident they can sell the business, citing “significant interest” but conceded suitors wanted a “right-sized” store network.
“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.
“As a 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,” administrator Simon Cathro said in a statement.
Staff from affected stores will be paid outstanding wages to the date they are terminated, others have been offered other roles within the Napoleon Perdis Group.
The closures signal progress in the sales campaign for the business, with administrators saying the interest of suitors was “piqued” by knowledge the company would be downsized.
“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,” Perdis said in a statement circulated by Worrels.
A first creditors meeting has been advertised and will be held simultaneously on February 12 in Sydney, Brisbane, Melbourne and Perth.
The chain is the second national retailer to call in administrators within a month, amid unprecedented pressure on retail businesses.
It is understood the business had been on struggle street for some time, with efforts to restructure the company in recent years failing to revive its fortunes.