Fri, 25 Oct 2019 | ADMINISTRATION
Regis UK, which operates the Supercuts and Regis hairdressing chains, has called in administrators. Deloitte have been appointed to explore options for the future of the business, which operates 223 salons across the UK and employs around 1,200 people.
All branches are to remain open during the process while Deloitte’s restructuring experts work on the business’ future. Industry sources say that they expect a buyer for the chain to be found.
The move to go into administration thwarts a bid by the group’s landlords to overturn Regis’ financial restructuring. Last year, the company agreed a Company Voluntary Arrangement (CVA) with creditors, which would have seen significant rent cuts at many sites. Landlords challenged the proposals in court.
Regis UK’s CVA would have seen rent cuts of up to 100 per cent at over 100 of the group’s 223 UK stores and concessions.
Landlords have criticised the CVA scheme, claiming it is being used as a method of cutting rents. An increasing number of businesses have been seeking to get CVAs, which enable companies to gain rent reductions and new terms on repayment of their debts.
Regis was sold by its American parent in 2017 to global salons operator the Beautiful Group.
Regis said its business, which recorded sales of £65 million in 2017, had been hit by a “perfect storm” of factors, including a decline high-street footfall and higher wages, which it said contributed to cash flow issues.
Joint administrator Rob Harding commented that Deloitte “are working with all key stakeholders to stabilise the situation and provide the best solution possible.” Harding added that Regis UK “operates two very strong brands.”
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