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Products from Purely Byron,the skincare brand co-founded by model and actor Elsa Pataky,are no longer available for purchase online.

“Any party interested in the sale of Purely Byron’s business or its assets should contact the administrators directly,” they added.

People with knowledge of the Purely Byron business said the collapse reflected problems with its major shareholder,embattled beauty group BWX,which owns 47 per cent of Purely Byron.

BWX is negotiating with its banks to stave off collapse and could no longer fund the Purely Byron business,which will not break even this year,according to sources who are not authorised to speak on the matter.

Signs of trouble emerged last month when embattled beauty group BWX, which owns 47 per cent of Purely Byron,wrote down the value of its stake by $2.8 million for the December half year. This included more than $2 million worth of loans. When a sale of the business fell through in recent weeks,the board had no choice but to put the business into administration.

Actors Elsa Pataky and Chris Hemsworth have become Byron Bay’s most prominent residents.Credit:Getty Images

A key issue will be Pataky’s future involvement with the brand,with her 5.4 million Instagram followers a potentially crucial component in promoting its products.

Pataky holds a minor shareholding in Purely Byron,but there are performance milestones that would eventually deliver her a 10 per cent stake in the business.

The administrators would not provide details on her role going forward,saying only that “Elsa Pataky has never been appointed as a director of Purely Byron,and any arrangements Elsa Pataky has with Purely Byron are strictly confidential”.

Documents filed to ASIC reveal that the directors of Purely Byron are entrepreneurs Lance Kalish and Ido Leffler.

The pair co-founded a natural beauty company Yes To Inc in 2006,which is stocked across major retailers in America,and Yoobi,a school and office stationery business and competitor to Smiggle.

Leffler also co-founded Beach House Group,an investment firm that has launched brands in collaboration with celebrities such as Kendall Jenner and Millie Bobby Brown.

The administrators’ statement clears concerns that Purely Byron might not be for sale as an ongoing business.

Itswebsite remains live,but none of the skincare products are available to buy,with the words “coming soon” appearing in place of “add to cart”.

The administrators said a report to creditors would be issued in four weeks,with details of the group’s stricken financial position and why it led to their appointment.

The first creditors meeting will be held virtually on March 22 at 11am.

In the documents lodged with ASIC,one of the administrators,Justin Holzman,said he was first approached by Purely Byron directors Lance Kalish and Ido Leffler on February 25 and held a series of meetings to determine the company’s solvency and options for the board.

Late last year,insolvency specialists warned that the high-interest rate environment would push more businesses,particularly in non-essential spending categories such as fashion retail,over the edge.

More to come.

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