1,400 jobs saved as landlords agree to take a haircut
Hairdressing chain Regis has got approval for its company voluntary arrangement (CVA) which it says will protect 1,400 jobs and all of its salons.
The Coventry-based company, which also operates the Supercuts brand, said it was “optimistic for the future ahead”.
The CVA sought rent reductions in half of its 220 sites, but keeps all of its sites open with no job losses.
Eddie Williams, who leads Grant Thornton’s restructuring practice in the Midlands, said: “I am very pleased that the creditors have supported the CVA proposals. This positive endorsement protects the employment of 1,400 employees and provides a solid platform for future trading.”
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.
Regis said: “The new cost base restructure will enable investment in stylist recruitment, retention and education, salon renovations, innovative technology upgrades, new marketing platforms and initiatives as well as an exciting new merchandise mix.”