Bodycare: Black Country stores 'close immediately' as firm crashes into administration with 450 jobs lost
Three West Midlands stores have closed after cosmetics firm Bodycare slid into administration today.
A total of 450 jobs have been lost across the country as the ailing firm confirmed it had gone into administration, closing 32 stores, including branches in Cannock, Stourbridge and West Bromwich.
Fears mounted for the firm earlier this week after national media reported they were on the brink of collapse, having brought in insolvency specialists Interpath to try and draw up a rescue plan for the business.
Today (September 5), Interpath confirmed they had been appointed as joint administrators of the chain, which has 147 stores nationwide and employs around 1,500 people.
In a statement, the administrators said that "in common with a number of other bricks and mortar retailers", the company has faced a number of challenges in recent years which had negatively impacted its financial position.
They said those challenges included rising rent and staff costs, a delayed transition to its online retail platform, and the cost-of-living crisis impacting its customer base. Interpath added that an aborted attempt to go public on the London Stock Exchange last year had led to a shortage of cash in the business which had "placed strain on supplier relationships", resulting in a shortage of stock.
In June, the company secured a debt facility of around £7 million from corporate finance firm Aurelius in order to stablise the business, which Aurelius said was "fully secured against Bodycare’s extensive retail inventory, to help the business return to growth."
A total of 115 shops will remain open and trading as normal while administrators try to find a buyer for the firm.
"These remain challenging times for high street retailers as rising costs and reduced consumer spending continue to weigh heavily on trading," said Nick Holloway, Managing Director at Interpath and joint administrator.
"Unfortunately for Bodycare, which was also contending with a significant funding gap and increasing creditor pressure, these challenges proved too difficult to overcome.”
"Our intention is to trade the majority of the Company’s stores in order to realise stock while we explore options for a possible sale of the business and its assets. In addition, and as a matter of priority, we will be providing all support to those employees impacted by redundancy, including supporting them in making claims to the Redundancy Payments Service."
Full list of stores set to close with immediate effect:
Beverley
Cameron Toll
Cannock
Clydebank
Cramlington
Croydon
Darwen
Dumfries
Edinburgh
Erdington
Falkirk
Hemel Hempstead
Kirkcaldy
Loughborough
Lytham St Annes
Macclesfield
Maidstone
Morecambe
Newport
Northfield
Paisley
Parkhead
Perth
Port Talbot
Rhyl
Royton
Scunthorpe
Stourbridge
Tamworth
West Bromwich
Wood Green
Wrexham
