BWX shares suspended from trading as lifeline financing sought

Wellness and beauty retailer BWX has sought an “immediate suspension” from the trading of its shares on the ASX to focus on refinancing the business and continue to function. 

The group – which owns brands including Sukin, Nourished Life, Flora & Fauna, Go-To, Andalou Naturals and Mineral Fusion – posted a loss of $100 million in its first half results and its CEO Rory Gration stepped down last month.

After purchasing hundreds of millions of dollars worth of successful beauty brands and platforms, the business – valued at $860 million five years ago – is now worth about $36 million.

In an announcement, the company said “voluntary suspension” is necessary to assist the company in managing its continuous disclosure obligations as it “procures additional debt or equity funding” or replaces its existing debt funding.

The refinancing will allow the company to execute its restructuring plans, address its inventory rundown and continue the sale of its major non-core assets.

The suspension will last until the company is able to complete its refinancing activities or have material certainty.

Discussions are underway between the company, its lenders and various parties who may provide debt/or equity funding. 

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