CVA proposed to slash rents at hairdressing chains

The Coventry firm behind hairdressing chains Regis and Supercuts has asked landlords to back proposals to slash rents on its stores through a Company Voluntary Arrangement (CVA).

Regis UK, which employs 1300 staff across 223 shops, says it will seek to restructure the lease agreements for its 220 sites.

It said it plans to ask for a reduction on rental costs on half of its stores.

Jackie Lang, managing director of Regis UK, said: “This action has been taken to restructure our costs to ultimately enable reinvestment into the business to improve our digital platforms and expertise in salon.

“If successful over 90% of our creditors will be unaffected.”

Eddie Williams, a partner at Grant Thornton, which is acting for Regis UK, added: “The company has put forward a proposal to its creditors that seeks to amend some terms in its lease obligations and stabilise the business.

“As part of this, there are no planned salon closures and as such, no employee redundancies are planned, which is a positive in the context of the challenges the high street has seen over the last 12 months and which continue to be prevalent.”