Update. It appears that the CVA has failed and the firm is now in administration. See this page
It has been announced that Regis UK are seeking a rescue deal to stay afloat.
The firm behind hairdressing chains Regis and Supercuts, look to slash rents through a company voluntary arrangement (CVA). No store closures or redundancies are intended, as of yet.
Currently, the firm have 220 salons and employs 1,300 staff.
The reasons for the CVA are said to be the struggle with lower footfall, higher pension costs and the apprenticeship levy.
Managing Director of Regis UK, Jackie Lang said: ‘’This action has been taken to restructure our costs to ultimately enable reinvestment into the business to improve our digital platforms and our expertise in salon. If successful over 90% of our creditors will be unaffected.’’
Grant Thornton are acting for the company and said: ‘’The company has put forward a proposal to its creditors that seeks to amend some terms in its lease obligations and stabilize the business’’.
Categories: What is a CVA or Company voluntary arrangement?