British beauty retailer Bodycare has entered administration, leading to the permanent closure of 32 of its stores. Reports indicate that some stores have already shut their doors earlier this week. The closures have resulted in around 450 employees losing their jobs. 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 such as 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. The company operates 147 stores across the UK.
The precarious financial situation of Bodycare was first brought to light by Sky News last week. Prior to its collapse, the retailer had secured a £7 million debt facility against its retail inventory. This debt facility, a formal agreement where a lender provides a specific sum of money to a borrower over a defined period, was not sufficient to avert the company’s downfall.
In a similar vein, Poundland narrowly escaped administration recently after a restructuring plan was approved by the High Court. The discount retailer, which was sold to private equity firm Gordon Brothers for a nominal sum, is set to close 68 stores, impacting approximately 1,000 employees. Poundland will also shutter its frozen and digital distribution site in Darton, South Yorkshire, as well as another warehouse in Springvale, Bilston, West Midlands.
Meanwhile, fashion chain River Island has implemented a restructuring plan to stave off collapse, resulting in the closure of 33 stores while negotiating reduced rents for 71 remaining locations. Landlords are being urged to reduce rents and potentially suspend payments on certain properties to mitigate losses. The High Court approved River Island’s rescue deal earlier this month, acknowledging the company’s ongoing financial challenges.
River Island’s legal representative, Matthew Weaver KC, emphasized the company’s struggle to reverse its financial decline. These recent developments highlight the challenging environment faced by high street retailers in the current economic landscape.