1,200 jobs at risk as salon chain enters administration
A hair salon chain with branches across the North West has called in administrators, putting 1,200 jobs at risk.
According to Sky News, Regis UK, which owns the Supercuts and Regis brands, slipped into administration earlier this week.
Sky News says a buyer is likely to be found for the retailer, after Deloitte was appointed to look after the day-to-day running of the firm.
Reports suggest that no sites are being closed while Deloitte looks for a buyer.
The move thwarts a legal challenge to Regis UK’s Company Voluntary Arrangement (CVA), an agreement with creditors that would have involved steep rent cuts at many of its sites.
The CVA sought rent reductions in half of its 220 sites, but kept all of its sites open with no job losses.
The hairdressing chain has been reducing the number of salons over several years but has failed to stop losses increasing.
In 2011, the last year the group made a pre-tax profit, revenues were £89m. Six consecutive years of lower revenues had reduced sales to £65.3m, but in that period aggregate losses had reached more than £14m – including £5.1m in the year to July 2017.
