British beauty retailer Bodycare has gone into administration, leading to the permanent closure of 32 of its stores. Reports suggest that some stores have already shut earlier this week. Around 450 employees have been laid off due to these closures. The Bodycare website is currently inaccessible, displaying a message informing visitors that the shop is closed.
Bodycare, known for offering products from popular beauty brands like L’Oreal, Nivea, and Elizabeth Arden, has enlisted advisors from Interpath Advisory to manage the administration process. Established in 1970 by Graham and Margaret Blackledge on a Lancashire market stall, Bodycare has been under the ownership of Baaj Capital since 2021 and operates 147 stores across the UK.
The news of Bodycare’s financial troubles was initially disclosed by Sky News last week. Prior to its collapse, the company had secured a £7 million debt facility against its retail inventory. This facility involves a formal agreement where a lender provides a specific sum of money to a borrower for a defined period. Bodycare is the latest in a line of high street retailers facing challenges in the current economic climate.
In a similar vein, Poundland narrowly avoided administration recently after receiving court approval for a restructuring plan. Following its sale to private equity firm Gordon Brothers for £1, Poundland announced intentions to close 68 stores, impacting approximately 1,000 employees. Additionally, the retailer will shut down its frozen and digital distribution site in Darton, South Yorkshire, and another warehouse in Bilston, West Midlands.
Meanwhile, River Island has successfully implemented a restructuring plan to avert collapse. However, this plan involves the closure of 33 stores and reduced rents for 71 other locations. Landlords are being urged to decrease rents for three years and potentially suspend payments entirely for select sites to mitigate losses. The High Court recently sanctioned River Island’s rescue deal.
Matthew Weaver KC, representing River Island, emphasized the company’s ongoing financial challenges that have necessitated these measures. The retail sector continues to face significant pressures, with various companies strategizing to navigate through tough economic conditions.