A high street beauty chain has said it will shut 32 shops and cut around 450 jobs after falling into administration.
Retailer Bodycare announced it had appointed administrators from Interpath Advisory on Friday afternoon.
It comes just weeks after bosses at the firm secured a £7 million debt facility as a short-term measure to avoid bankruptcy.
Bodycare, which sells toiletries, cosmetics, skincare products and fragrances, employs a total of 1,500 people and has 147 shops across the UK.
The business is currently owned by Baaj Capital, a family-run firm led by Jas Singh.
Some 450 people have already been made redundant. Administrators will now make efforts to find a buyer for the crisis-hit retail chain.
A high street beauty chain has said it will shut 32 shops and cut around 450 jobs after falling into administration
Bodycare was founded by Graham and Margaret Blackledge in Skelmersdale, Lancashire, in 1970.
It remained profitable until the pandemic, but has struggled in recent years amid rising running costs and high inflation levels.
The 32 stores to close have already shut with immediate effect, and their employees made redundant.
Branches in Croydon, Maidstone, Wrexham, Cannock and Loughborough are amongst those to shut their doors for good.
In a statement, Interpath said Bodycare had ‘faced a number of challenges in recent years which have negatively impacted its financial position’.
It added: ‘This included rising costs, including rent and people costs, a delayed transition to its online retail platform, and the cost-of-living crisis impacting its customer base.
‘In addition, a planned IPO in 2024 was aborted which led to a shortfall in funding. This, in turn, placed strain on supplier relationships, resulting in a shortage of stock.
‘Despite the very best efforts of the directors to address these challenges, and with creditor pressure mounting, the difficult decision was taken to file for the appointment of administrators.’
Nick Holloway, joint administrator for Bodycare and managing director at Interpath, said: ‘These remain challenging times for high street retailers as rising costs and reduced consumer spending continue to weigh heavily on trading.
‘Unfortunately for Bodycare, which was also contending with a significant funding gap and increasing creditor pressure, these challenges proved too difficult to overcome.
‘Our intention is to trade the majority of the company’s stores in order to realise stock while we explore options for a possible sale of the business and its assets.
‘In addition, and as a matter of priority, we will be providing all support to those employees impacted by redundancy, including supporting them in making claims to the Redundancy Payments Service.’
