Wednesday 11 December 2019 12:17 pm

Supercuts secures rescue deal

Budget hair salon chain Supercuts has secured a rescue deal, in a move that will save more than 1,000 jobs.

Bushell Investment Group, owned by entrepreneur Lee Bushell, supported a management buy-out of the business and assets of Supercuts owner Regis UK.

Around 60 sites are expected to close as part of the deal, with 200 jobs still at risk, Sky News reported.

Read more: Supercuts owner Regis UK calls in administrators

Matt Cowlishaw, joint administrator, said: “We are pleased to have concluded the sale and for being able to preserve a significant number of jobs at two well-known brands.”

Regis UK appointed Deloitte as administrator in October, putting the future of its branches across the UK at risk. 

The hairdresser, which was sold by its US parent company to a private equity firm two years ago, filed for a company voluntary arrangement (CVA) last year

The deal, which was approved by creditors, would have allowed the company to slash rents at many of its salons. 

However, in December landlords, including retail property giants British Land and Hammerson, filed a legal challenge to the CVA. 

Deloitte joint administrator Rob Harding said in October: “The retail trading environment in the UK remains extremely challenging and Regis UK Limited had been seeking to address this through a restructuring of its business.

Read more: Supercuts owner asks landlords to cut rents

“Unfortunately, these trading challenges coupled with the uncertainty caused by the legal challenge to the CVA have necessitated the need for an administration appointment.”