Supercuts owner Regis UK calls in administrators
Supercuts owner Regis UK has appointed administrators as the hair salon chain becomes the latest victim of a challenging retail environment.
Regis UK, which trades under the Regis and Supercuts brands, entered insolvency yesterday and appointed Deloitte as administrator, Sky News reported.
Read more: Supercuts owner Regis UK asks landlords to slash rents
The move by the hairdresser, which was sold by its US parent company to a private equity firm two years ago, puts the future of its 220 branches in doubt.
Around 1,200 jobs are at risk following the firm’s collapse, however sources told Sky News that the firm is expected to secure a buyer.
No sites will be closed while Deloitte investigates potential options for the firm.
The decision to enter an insolvency process follows a legal challenge to the company’s restructuring plan, which would have involved slashing rents at many of its branches.
The company voluntary arrangement (CVA) was approved by the majority of creditors last October.
However, in December landlords, including retail property giants British Land and Hammerson, filed a legal challenge to the CVA.
The rescue plan would have seen rent cuts of up to 100 per cent at 100 salons.
Rob Harding, joint administrator at Deloitte, said: “The retail trading environment in the UK remains extremely challenging and Regis UK Limited had been seeking to address this through a restructuring of its business.
Read more: Landlords pick a fight with the CVA
“Unfortunately, these trading challenges coupled with the uncertainty caused by the legal challenge to the CVA have necessitated the need for an administration appointment.
“This in order to provide protection for the business whilst restructuring and sale options are fully considered and explored.”
Main image credit: Getty