Napoleon Perdis Shutdown: 28 Stores Close As Makeup Empire Collapses
More than half of Napoleon Perdis makeup stores are set to close immediately after the cosmetic empire collapsed last week.
Napoleon Perdis has 56 stores across Australia and will close 28 immediately as administrators attempt to restructure the business to keep it alive.
On Thursday, Napoleon Perdis called in administrators from Worrells Solvency and Forensic Accountants after trying to unsuccessfully sell the business.
READ MORE: Napoleon Perdis' Makeup Empire Collapses
Administrators assessed each Napoleon Perdis store across the country over the weekend, surveying their performance and positioning in the current market environment.
“As a result of this review we have identified a number of stores that will be closed," Simon Cathro from Worrells Solvency and Forensic Accountants said in a statement.
Stores closing include one in the ACT, 10 in New South Wales, five in Queensland, one in South Australia, seven in Victoria and four in Western Australia.
Staff will be paid their wages owning up until the day they are terminated, while others could be offered other roles within the Napoleon Perdis Group.
It is unclear how many jobs will be lost as a result of the business collapse. Napoleon Perdis had 600 employees as of 2015.
Napoleon Perdis confirmed on Monday all gift cards and rewards vouchers will be suspended indefinitely.
"We wish to advise customers that unfortunately Gift Vouchers and Rewards Vouchers have been suspected at this time, both in-store and online," a Facebook post read.
Napoleon Perdis Headquarters did recommend, however, that customers hold on to the vouchers and rewards for the future.
"We do recommend that you hold on to your Gift Cards and we thank you for your understanding and patience during this time."
Reactions to the decision to suspend gift cards have been mixed online, with Napoleon Perdis' Facebook post attracting over 1,000 comments.
"How are they actually allowed to do that when it’s just a card that is representing cash -- that has been paid for with legal tender!," one Facebook user commented.
Others were more sympathetic towards the Aussie brand, while others posted messages of concern and well wishes to the staff of the company.
"When you buy a gift card the money doesn’t actually go to the company in which it states on the gift card. It goes to the gift card company -- once then you spend the gift card THAT'S when the company will see the money -- there’s a number to the gift card company on the back of the card," another user wrote online.
"So sad that this has happened. I hope there is light at the end of the tunnel for all involved (Napoleon Perdis, staff, investors and consumers)," a third person posted.
Napoleon Perdis blamed the rising cost of living and the change in how people shop as the reason for the brand collapse.
"... at the moment retail is suffering a little bit of a downturn, there is less foot traffic, e-commerce is up, the customer is shopping differently, they want different experiences," Perdis told The Project.
"At the end of the day, there has been huge costs ... electricity has gone up, rent has gone up, lifestyle has gone up, less consumer spending... at the end of the day we have a higher cost structure to our income."
Perdis confirmed his main priority is to look after his staff and customers and essentially, continue to produce makeup.
"Our main priority is to look after our staff, our customers and to keep producing wonderful products for the customer," he said.
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