Investors in cosmetics brand Kester Black say they were only told of the company’s financial hardships weeks after it entered voluntary administration, surprising those who contributed to its $2.1 million equity crowdfunding raise three years ago. The ethical beauty label secured $2.
16 million from nearly 1700 Birchal investors in October 2021 , at a valuation of $22 million. But the company behind Kester Black entered voluntary administration on July 9 , in a process that evaporated its share value. The administration was not publicised, with the brand’s online store and social media channels continuing to offer products as per usual.
The Kester Black business and assets were sold to a related entity on August 1, and creditors accepted a Deed of Company Arrangement on August 13. Hamilton Murphy, the firm handling the administration, informed shareholders of the administration via email six days later, on August 19. SmartCompany has spoken to several Kester Black investors, who say that the email, which advised them of a shareholders’ meeting on Thursday, August 22, was the first they heard of Kester Black’s financial troubles.
On social media, others say they were informed of the administration via email on August 12. SmartCompany has contacted Hamilton Murphy for comment. Positive outlook in shareholder update News of Kester Black’s administration came as a surprise to some investors, as the company provided largely positive updates on its financial performance in.