More than a thousand high street jobs will be put on the line this week as a major high street chain with 149 stores is on the brink of collapse. Amid a frantic race to find a rescue deal, Bodycare, which employs 1,500 people, could fall into administration this week.
Bodycare is expected to appoint administrators from Interpath Advisory as soon as Friday, according to Sky News. This comes under a week since Baaj Capital, led by Jas Singh, secured a £7million loan to try and stabilise the business. Bodycare’s retail inventory backed that short-term loan. Despite these efforts, it appears to have just been a failed last-ditch effort.
The appointment of administrators is likely to drive Interpath to increase efforts to secure buyers for parts of the business.
If the chain collapses, administrators will take control of the company to decide if it can be saved, sold, or shut down entirely.
This could result in widespread store closures, job losses, and problems for suppliers.
The group has made several high-profile retail investments, including In The Style and Amscan International.
Bodycare, which sells brands well known loved brands L’Oreal, Elizabeth Arden and Nivea, was profitable prior to the pandemic but has struggled financially since.
It also failed in a bid to acquire The Original Factory Shop earlier this year.
Bodycare was established by Graham and Margaret Blackledge in Skelmersdale in 1970, the chain was forced to rely on pandemic-era government support through a taxpayer-backed loan to survive.
Bodycare is run by retail veteran Tony Brown, who held senior roles at BHS and Beales, the now-defunct department store groups.
The chain is the latest high street brand to run into hot water. Scope will shut a flurry of stores this month, the national disability equality charity, revealed in January that it was struggling financially and would be forced to shut some stores.
It comes after River Island narrowly avoided administration after winning creditor approval for a restructuring involving store closures and job losses.