Hairdressing group Regis, which owns Regis Salons and Supercuts, is to ask landlords to cut the rent on more than a hundred of its stores to help it stay afloat.
The company is looking to push through a company voluntary arrangement – a controversial type of rescue deal whereby a struggling company asks its creditors to cut it some slack.
Unusually for a CVA, Regis isn’t looking to close any of its sites or cut staff numbers, instead, it wants the landlords of half of its stores to reduce rents.
Eddie Williams, a partner at Grant Thornton, which is acting for Regis UK, says: “The company has put forward a proposal to its creditors that seeks to amend some terms in its lease obligations and stabilise the business.
“As part of this, there are no planned salon closures and as such, no employee redundancies are planned, which is a positive in the context of the challenges the high street has seen over the last 12 months and which continue to be prevalent.”
Bad news for #Regis and #supercuts. This latest call for a CVA is the first this year outside of the traditional #retail domain, pulling the services sector into the turbulent headwinds which have faced food & beverage, department stores and the fashion sectors in 2018. https://t.co/KMc0DLJRTS— James Child (@JamesChildEG) October 12, 2018