Zoe Foster Blake’s skincare range, Go-To is known for being ‘uncomplicated’ but there is nothing simple about the significant financial troubles with a record $100 million loss.
The Go-To brand was launched in 2014, with various skincare lines releasing off the back of its success including Bro-To for men and Gro-To for children.
Zoe’s skincare range was launched in 2014.
(Image: Instagram)But in 2021, the entrepreneur sold 50.1 per cent of the business to the beauty product conglomerate BWX for $89 million. It was expected that Zoe could sell her remaining shares to the same company for a similar amount.
However, in December 2022 the Go-To suffered $30 million loss after the range was slashed. ASX-listed owners of the brand posted a $337 million annual loss after board members departed.
BWX has also announced a $100 million loss in the first half of the 2023 financial year which the company identified could be a result of de-stocking, capital commitments for the manufacturing facility, inability to maintain inventory and out-of-stock issues in Australia, international and online.
The loss could reduce Zoe’s share in Go-To.
(Image: Instagram)The blow is expected to significantly reduce the value of Zoe’s 49.5 per cent share in Go-To skincare and BWK still have the option to buy her remaining stake.
BWX is also behind other well-known beauty brands including Sukin, Flore & Fauna and Nourished Life.
The CEO Rory Gration did step down from his position in January and was replaced by former Coles chief sustainability, property and export officer Thinus Keeve, however it seems like it has been too little too late with BWX set to collapse imminently.
Since news of the company’s financial woes was announced in January, BWX has been negotiating with it’s lender – the Commonwealth Bank – but no such agreement has been reached.
”In light of recent communications from the company’s lender, the Company’s board is considering how to best protect the interests of the company and the group as a whole in the absence of an agreed refinancing,” the company told the ASX.
BWX is understood to have been in breach of lending covenants dictated by the CBA since November 2022, with a waiver extended until March 31.
Trading has now been put to a halt on its shares.
It will be interesting how the blow impacts Zoe and comedian husband, Hamish Blake’s lavish lifestyle after purchasing three luxury mansions since moving to Sydney. They were recently spotted near their $8.93 million mansion in Vaucluse.
However, given the couples collective success in television, writing and radio we definitely haven’t seen the last of them!
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