Hair salons in Jarrold and Castle Quarter under threat as owner falls into administration
PUBLISHED: 10:37 25 October 2019 | UPDATED: 14:38 25 October 2019
Denise Bradley/Castle Mall/Regis/Supercuts
Another high street name has collapsed into administration, leaving the future of two Norwich hair salons and staff in the balance.
The owner of Supercuts and Regis has fallen into administration, less than a year after bosses attempted to persuade landlords to give the company heavy rent cuts.
The chain has a salon in Norwich's Castle Quarter shopping mall, as well as a Regis concession in Jarrold.
The chain has around 1,200 employees across 223 salons in total.
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It is predicted that these sites will continue to operate while the business attempts to find a buyer.
Administrator Deloitte said Regis UK would continue trading while options were being explored and no redundancies or store closures were being announced at this stage.
Supercuts has been struggling for the last few years and went through an insolvency process known as a Company Voluntary Arrangement (CVA) in 2018.
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It meant the company could cut its rents in an attempt to stay afloat.
The CVA process has been widely used by several high street names in recent years, including Arcadia, New Look, and Carpetright.
But it has faced criticism from some landlords who claim it is being used as a way to cut rents, instead of only being used to prevent a firm from collapsing.
Rob Harding, Deloitte joint administrator, 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."
Regis said at the time that a "perfect storm" of factors, including falling customer numbers and higher wages, had hurt the business.
The CVA saw rent cuts of up to 100% at more than 100 of Regis's 223 stores and concessions.