Supercuts owner goes into administration putting 1,200 jobs at risk
THE owner of hairdressing chain Supercuts has gone into administration putting 1,200 jobs at risk.
Deloitte says it's been appointed as an administrator for Regis UK and International Beauty Limited.
Regis UK operates around 220 hairdressing salons around the UK, primarily under the Regis and Supercuts brands and employs around 1,200 people in total.
But Deloitte says the salons will continue trading as normal while "options are explored".
It adds that no redundancies or store closures are being announced yet.
Often when firms go under they stay open and trade as normal while a buyer is sought.
But sometimes in this scenario they might change certain terms and conditions - for example refuse to accept refunds or gift cards.
Supercuts marketed itself as a budget salon for high street shoppers, offering both drop-in and pre-booked appointments.
Hair cuts and blow drys started from just £15.95, while colour packages cost from £53.
But Deloitte says the salons have suffered from decreased footfall in shopping centres, where a number of salons are located, as people instead go online.
It adds that the cost of materials has also increased.
Regis UK had proposed a company voluntary agreement (CVA) in December 2018. But while it was supported by creditors, the deal was subsequently challenged by a number of landlords.
A CVA can provide a company with some breathing space to allow it to reorganise or restructure its funding and/or its operations with as little disruption as possible, while avoiding an administration or liquidation.
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.
"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 is in order to provide protection for the business whilst restructuring and sale options are fully considered and explored.
“The group operates two very strong brands and we are working with all key stakeholders to stabilise the situation and provide the best solution possible.
"We would like to thank the group’s employees and other key stakeholders for their ongoing support at this difficult time.”
More on money
Supercuts isn't the only high street chain reported to be struggling. Payday lender QuickQuid is said to be "on the verge of collapse" today.
While the past year has seen high street stalwarts Debenhams and House of Fraser in financial difficulties.
Major chains have also drastically slashed prices in a bid to keep shoppers coming through the doors.