Barry M, one of the UK’s best-known cosmetics brands, has filed an intention to appoint administrators and is urgently seeking a buyer, highlighting the continued pressure on retailers as the new year gets underway.
January has already seen a notable rise in insolvencies, as many retailers reach the point where Christmas takings have been banked but ongoing costs and liabilities remain, leaving little room to manoeuvre once seasonal trading ends.
The business, which is known for its colourful nail varnishes and affordable vegan cosmetics, has appointed restructuring specialists Begbies Traynor to explore rescue and sale options.
Barry M supplies a number of major high-street retailers, including Boots and Superdrug, alongside operating its own direct-to-consumer online store.
Despite outward signs of stability, recent accounts show turnover rising to £17.4 million for the year to February 2024, with improved profitability. However, increasing operating costs and ongoing supply-chain disruption have eroded margins, leaving the business vulnerable despite growing revenues.
Barry M was founded in the 1970s by Barry Mero, initially trading from Ridley Road Market in east London. Over the following decades, the brand became a household name, associated with bold colours, accessible pricing and ethical credentials.
Following Mero’s death in 2014, his son Dean took over the business, maintaining its vegan and cruelty-free positioning and expanding its digital and social media presence. In 2024, the company undertook its first major rebrand in decades in an effort to appeal to younger consumers.
The business manufactures its products at a 45,000-square-foot facility in Mill Hill, north London, employing more than 100 people. While UK-based production has long been central to the brand’s identity, rising energy prices, labour costs and regulatory compliance have significantly increased overheads compared to overseas competitors.
Barry M’s administration reflects wider difficulties across the UK retail and beauty sectors. Over the past year, a number of well-known brands have entered insolvency processes or reduced their footprints as consumer spending weakens and cost pressures remain elevated.
Quiz clothing has also made a similar move
As Barry M enters formal insolvency, stakeholders often face significant uncertainty. Here is a breakdown of the legal framework and what it means for those affected.
Administration is a powerful statutory process governed by the Insolvency Act 1986. It is triggered when a company is insolvent and can no longer meet its debts. An independent Licensed Insolvency Practitioner (IP) is appointed to take control from the directors. A key feature is the statutory moratorium—a legal “shield” that instantly stops all legal actions, such as winding-up petitions or bailiff visits, providing the “breathing space” needed to rescue the business or achieve a better result for creditors than immediate closure.
The law dictates a strict hierarchy for the distribution of funds. Fixed charge holders (typically banks with security over property) are paid first. Once the administrator’s fees are covered, preferential creditors are next; this includes employees (for specific arrears) and HMRC for taxes like VAT and PAYE. Following these are floating charge holders, and finally, unsecured creditors—which include trade suppliers and customers—who are at the back of the queue and frequently receive only a small fraction of their debt.
Entering administration does not mean all jobs are instantly lost. For the first 14 days, the administrator assesses the company’s viability and may make redundancies. If a member of staff is kept on past this 14-day window, the administrator “adopts” their contract, meaning their ongoing wages and rights become a priority expense. Those made redundant can claim for unpaid wages and notice pay via the Redundancy Payments Service if the company has insufficient assets to cover these costs.
Suppliers and customers are generally unsecured creditors. Suppliers should stop granting credit under old agreements and negotiate “pro-forma” (upfront) terms for any new supply to the administrator. For customers, deposits and gift cards are rarely honoured. However, those who paid over £100 via credit card may be protected under Section 75 of the Consumer Credit Act and should contact their bank immediately to initiate a claim.
Written ByRobert Moore
Marketing Manager
Rob has over two decades of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at RMT to develop strategic marketing programmes to support the business plan and drive more company rescues.
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