IWP restructures to consolidates debts and fight job losses

By Simon Pitman

- Last updated on GMT

Related tags Personal care Stock Stock market

Irish cosmetics and personal care company IWP International has
announced a restructuring that aims to return the company to
profitability after two years in the red.

The company, which also makes and distributes a range of household goods, said the restructuring will mean new owners and a new management team. The company was subsequently de-listed from the Irish Stock Exchange on March 31.

The restructuring plan, which is yet to be approved by shareholders, will be overseen by restructuring specialists Kroll Talbot Hughes.

The company is said to owe €120m in debts, which had put a question mark over its manufacturing and distribution operations both in Europe and the US.

However, the restructuring is said to have secured the future for most of the company's 1,600 workforce, which is located across the UK, Netherlands, Poland, Ireland and the US, with headquarters in Dublin.

The company's cosmetics decision was established in 1980 and manufacturers products that are sold in 94 countries across the world, while the personal care division focuses mainly on the Netherlands and UK market.

Brand portfolios include Constance Carol cosmetics and Netherlands-based Royals Sanders personal care products.

The restructuring means that around 90 per cent of shares in the company will be redistributed to an investment group specialising in distressed businesses.

This move will absorb the debts and the company will then see it redistributed amongst Cognis Capital, Marathon, Merrill Lynch and Strategic Value Partners, who will ultimately own a bombined 50 per cent share in the company.

Alex Sorokin, a partner of Kroll Talbot Hughes, took over as interim CEO for IWP at the beginning of January and will now take the position on a permanent basis.

Sorokin said that certain aspects of the business had been neglected in the past, but because the company still has a strong brands portfolio, he is expecting to be able to build on that aspect of the business to return the company to profitability.

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