Australian cosmetics label Kester Black has discontinued its nail polish, the product central to its early success, as the brand moves past a period of financial turmoil.
Kester Black last month announced the end of its ethically produced and cruelty-free nail polish line, launched by founder Anna Ross in 2014.
Taking to social media, Ross said the decision reflects “the need to simplify our business and focus on what makes it viable in the long run”.
The brand is now holding a final, “end of an era” nail polish sale, with a handful of nail care products also discontinued.
Kester Black’s other nail care products — and its skincare line, mascara, and lipstick — will remain on offer after the nail polish lines sell out.
It is the brand’s most significant change of course since mid-2024, when it fell into voluntary administration.
A report prepared for creditors revealed Kester Black ordered a large quantity of nail polish from its overseas suppliers, after COVID-19 restrictions delayed previous shipments.
But Kester Black struggled to sell some of its slow-moving nail polish, with some products approaching or passing their expiry date by the time the administrator was appointed in July last year.
Fergus Sully, Ross’ partner and long-time Kester Black team member, bought the brand out of administration and now operates it through a new company.
Sully, who serves as Kester Black’s managing director, told SmartCompany nail polish accounted for 50% of its product range — but only 5% of its total revenue contributions.
“We understand many people associate Kester Black primarily with nail polish, but our expansion into other categories has been important for our business,” he said, in a statement provided on Friday.
Along with its nail care products, Sully said the success of its lipstick and mascara lines shows what the brand’s “next chapter” could be.
“We recognise that while nail polish has been a small part of our revenue mix, it has been a big part of our brand,” he said.
“However, we are excited about the growth potential in other categories.”
Behind the scenes, Sully said the Kester Black business is implementing changes to ensure its stability.
That includes the closure of Kester Black’s New Zealand-based subsidiary, and the fulfilment of all orders from its Melbourne warehouse, erasing some of the logistical complexity that contributed to the former company’s financial hardship.
After receiving expert advice, the business is “committed to building a more profitable, sustainable brand that can better serve our customers and stakeholders in 2025 and beyond,” said Sully.
Before the former company entered voluntary administration, it also pursued an equity crowdfunding raise through Birchal, garnering $2.16 million in investment.
The value of those shares fell to zero in the voluntary administration.
Some investors in the prior company were only informed of the administration weeks after the fact.
The new company has no obligation to cover those shareholder losses.
But Sully says the new version of Kester Black is offering those shareholders gift vouchers, with many receiving vouchers equivalent to the amount they invested in the former company.
Other offers, to “ensure fairness for all shareholders”, are in development.
“We remain committed to fulfilling our promises to shareholders, including those with larger investments, while acknowledging that this will be a gradual process,” said Sully.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
