Priceline, Napoleon Perdis and David Jones Come Full Circle
Napoleon Perdis makeup was rolled out in Priceline stores from July 2018 and was the franchisor’s first foray into the prestige beauty market.
Priceline presented the distribution deal as an opportunity to turn the decline in mass market cosmetic sales into a positive by offering customers a ‘niche’, ‘prestige’ alternative and simultaneously launched the “Beauty Edit” – a new, dynamic, ‘cult’ product range that would sit outside the constraints associated with the Merchandise Range.
The cost per store of carrying Napoleon Perdis was $9,623.43 or $6,534.09 per bay (or $10,684.35 per store and $7,254.43 per bay including distribution fees).
August 2018: With insolvency looming, Napoleon Perdis enters into a distribution deal with Priceline, ending his 16-year relationship with David Jones.
January 2019: Napoleon Perdis enters into voluntary administration.
August 2020: Newly acquired by investment company Kuba Investments for $1.6 million, Napoleon Perdis is returning to the David Jones beauty counter in 12 locations across the country, as well as online and pulling out of Priceline – a major blow to Priceline and API, both of which touted the brand as a top seller in its stores.
Under the Deed of Company Arrangement (DOCA), unsecured creditors will receive between 4¢ and, if all goes well, 13¢ on the dollar.Australian Pharmaceutical Industries is a secured creditor owed $2.3 million and will either receive a 1.5 per cent return or have their debts adopted by the new owners under the DOCA.
While this may seem like a relatively good deal it’s by no means a done deal: the proposal means creditors cannot claim against the company and the company cannot be placed into liquidation, even if the terms of the deed are not met. It also highlights the extent to which the distinction between parent company API and Priceline is blurred.
With 15% of sales generated by new products the pressure is on for API and Priceline to fill the void left by Napoleon Perdis.
Priceline, Napoleon Perdis and David Jones Come Full Circle
Napoleon Perdis makeup was rolled out in Priceline stores from July 2018 and was the franchisor’s first foray into the prestige beauty market.
Priceline presented the distribution deal as an opportunity to turn the decline in mass market cosmetic sales into a positive by offering customers a ‘niche’, ‘prestige’ alternative and simultaneously launched the “Beauty Edit” – a new, dynamic, ‘cult’ product range that would sit outside the constraints associated with the Merchandise Range.
The cost per store of carrying Napoleon Perdis was $9,623.43 or $6,534.09 per bay (or $10,684.35 per store and $7,254.43 per bay including distribution fees).
August 2018: With insolvency looming, Napoleon Perdis enters into a distribution deal with Priceline, ending his 16-year relationship with David Jones.
January 2019: Napoleon Perdis enters into voluntary administration.
August 2020: Newly acquired by investment company Kuba Investments for $1.6 million, Napoleon Perdis is returning to the David Jones beauty counter in 12 locations across the country, as well as online and pulling out of Priceline – a major blow to Priceline and API, both of which touted the brand as a top seller in its stores.
Under the Deed of Company Arrangement (DOCA), unsecured creditors will receive between 4¢ and, if all goes well, 13¢ on the dollar.Australian Pharmaceutical Industries is a secured creditor owed $2.3 million and will either receive a 1.5 per cent return or have their debts adopted by the new owners under the DOCA.
While this may seem like a relatively good deal it’s by no means a done deal: the proposal means creditors cannot claim against the company and the company cannot be placed into liquidation, even if the terms of the deed are not met. It also highlights the extent to which the distinction between parent company API and Priceline is blurred.
With 15% of sales generated by new products the pressure is on for API and Priceline to fill the void left by Napoleon Perdis.
