0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Owner of Hairdressing Chains Supercuts and Regis Enters Administration

Written by: Keith Tully

Reviewed: Friday 25th October, 2019

Hairdresser using scissors and combThe owner of the hairdressing chains Supercuts and Regis has entered into administration after struggling to make profits and failing to avoid insolvency.

Around 1,400 people are employed by Regis UK, which owns and operates a total of 223 hairdressing salons across the two brands.

It is not currently clear whether the chain of outlets will be acquired by a new buyer but Deloitte has now been called in to act as administrators.

Regis UK recently entered into a Company Voluntary Arrangement (CVA), officially a form of corporate insolvency, in an effort to restructure its operations and reduce its rent-related overheads.

However, the CVA process has not had the effect of reviving the fortunes of Supercuts and Regis salons.

An increasing number of retailers are entering CVAs as a means of reorganising and reducing overheads, although in some cases there have been legal challenges and push back from creditors about the terms of these arrangements.  

Other companies that have pursued CVAs in recent quarters include Mothercare, Carpetright, New Look and Arcadia, which owns Topshop, Topman, Dorothy Perkins and Miss Selfridge.

Falling customer numbers and higher wages have been cited by bosses at Regis UK as making life more difficult for its hairdressing outlets, with the environment for retail businesses nationwide generally regarded as being very tough indeed.

In recent days, the British Retail Consortium revealed that there were close to 85,000 retail sector jobs lost over the course of the year to the end of September.

“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,” explained Rob Harding, one of the newly appointed administrators at Regis UK.  

The several hundred Supercuts and Regis salons will continue to operate as normal for now while administrators look for potential new buyers and consider how best to move forward.

“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,” said Mr Harding from Deloitte.

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Join Keith Tully on Google Plus Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
75
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners