Kristin Fisher Eyebrows (KFE) has been forced into administration after the Australian Taxation Office (ATO) voted against a plan to restructure the debt-laden business.
The business, owned by celebrity eyebrow artist and socialite Kristin Fisher, publicly revealed it had debts of almost $900,000 six weeks ago.
According to documents filed with the Australian Securities and Investments Commission (ASIC), Ms Fisher brought in a restructuring specialist in May to help the company after it was discovered she owed $813,024 to three unsecured creditors and an additional $46,409 to two secured creditors.
The restructuring specialist, Mervyn Kitay of forensic accountants Worrells, submitted a restructuring plan to ASIC, in order to prevent the company from falling into insolvency.
The plan resulted in a proposal to pay $216,000 this year, with outstanding debt still required to be paid, but was rejected by the ATO, which is understood to be the major creditor of the business.
The situation developed further late last week with ASIC documents showing administrators Jeremy Nipps and Rahul Goyal of Cor Cordis had been appointed to the business.
The administrators also posted notification that a creditors’ meeting would be held on December 12.
Mr Nipps told news.com.au: “Cor Cordis is urgently assessing the business operations for KFE with a view to explore all options to restructure or recapitalise the businesses, including through a deed of company arrangement.”
“Whilst Cor Cordis are undertaking the assessment, based on initial financial information we have determined that the business remains viable and as such is it a ‘business as usual’ approach for the salon,” Mr Nipps said.
“This includes continuing to employ all staff to ensure that KFE is able to deliver the continued bespoke eyebrow service it is renowned for. The process will not impact on bookings or the use of gift cards.”
A report by Mr Kitay (which refers to Ms Fisher by her married name of Barnes) said the business had been negatively affected by both Covid restrictions and the break up of Ms Fisher’s marriage, with the events described as “calamitous”.
ASIC documents show the business experienced a $927,000 drop in revenue due to Covid.
“It is clear from my review, that the combined effects of Covid (including lock downs) and the matrimonial breakdown, exacerbated by a lack of financial advice, resulted in the business becoming the primary source of funding for both its affairs and that of Ms Barnes personally,” Mr Kitay wrote.
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“The effect of this was the start of what may be described as a substantial increase in indebtedness owed by Ms Barnes to the Company. For example, the Company became the source of funding of Ms Barnes’ personal income tax debts.”
The company has a salon in the exclusive Sydney suburb of Double Bay, and according to the company’s website, Ms Fisher, whose services cost from $40 to $1600, is “responsible for sculpting and perfecting the brows of Sydney’s elite style and celebrity set”.
The business has over 45,000 followers on Instagram and offers brow services such as waxing, shaping, threading, lamination and tinting, as well as eyelash lifts and tints and LED light therapy sessions.
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