About 1,200 jobs are at risk after the owner of the Supercuts hairdressing chain, one of Britain’s biggest, called in administrators.
Regis UK — which was sold by its American parent to Regent, a private equity firm, in 2017 — was placed in administration on Wednesday.
Deloitte, the accountants, is understood to be handling the process, which puts the future of its 220 salons in doubt. Regis UK trades under the Supercuts and Regis brands in shopping centres and on the high street.
Geoffrey Rappaport and Frank Emmet opened the first Supercuts salon in Albany, California, in 1975. The chain was then bought by Regis Corporation in 1996. Since its sale to Regent, the chain has struggled to cope with lower footfall in shopping centres and higher staff and pension costs.
Last year it agreed a company voluntary arrangement with its creditors in an effort to cut its rents and stay afloat. However, last December landlords including British Land and Hammerson filed an appeal to challenge Regis’s company voluntary arrangement in the courts.
Staff have been told about the latest developments and the shops are expected to remain open for the time being while Deloitte explores its options. Citing industry sources Sky News, which first reported the story, said a buyer was expected to be found.
Large numbers of retailers are seeking compromise agreements over their rent as they struggle with the malaise on the high street, but CVAs have been criticised by landlords. Supercuts was said to have asked for rent cuts of up to 100 per cent at 100 of its sites.
The British Retail Consortium suggested this week that 85,000 retail sector jobs had been lost in the past year.
