Cosmetics company misses payment deadline, set to go under

The company missed paying out the city of Clovis, in New Mexico, $1 million it owed city authorities, a sum that related to the merger and relocation of the business back in 2011, according to a report in the ABQ Journal.

Clovis City attorney told the publication that the fact the company had missed the deadline would now lead to the company’s assets being auctioned off in an attempt to recoup an estimated total of $1.8 million that is owed to the city authorities.

Debt relates to failed relocation​

Evidently this debt relates to the city authority’s purchase of BHSI’s cosmetics manufacturing facility in California, a deal that was set to enable the company to relocate to Clover, set up manufacturing there and create 350 jobs in the area.

However, the deal never came to fruition and initial deadlines to transfer the business to new premises in the city were never met.

The agreement to compensate the city was drawn up between Clovis mayor David Landsford and the company’s CEO Brian Sperber back in May of this year, stipulating that BHSI pay $1 million in compensation by June 16, this year.

Company aimed to expand its business following the relocation​

BHSI was aiming to expand its business following the relocation to Clovis, but the company has faced unforseen challenges that led to the postponement of the move, which ultimately never saw it happen.

As well as cosmetics, the company was to manufacturer some pharmaceutical and nutraceutical products, partly on a private label basis.