More than a thousand jobs will be put at risk when Bodycare is forced to call in administrators.
Sky News reported that the health and beauty brand is expected to appoint administrators from Interpath Advisory as soon as Friday.
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Founded more than half a century ago in Lancashire, the retailer specialises in fragrances, toiletries, cosmetics, and skincare products.
It currently employs around 1500 people and has almost 150 stores across the United Kingdom.
The firm has multiple shops across Greater Glasgow, including one at Glasgow’s Fort, another in The Forge Shopping Centre, another in Braehead Shopping Centre in Renfrew, and one in East Kilbride.
Sky reported that the chain’s collapse into insolvency proceedings is likely to trigger a further effort by Interpath to find a buyer for parts of the business.
The retailer is owned by Baaj Capital, a family office run by Jas Singh. Baaj, which is considered a likely candidate to purchase Bodycare back from the administrators, counts In The Style among its other investments.
It is understood that Bodycare’s deepening crisis comes just weeks after the retailer secured a £7m debt facility to buy it short-term breathing space.
The facility was secured against Bodycare’s retail inventory, according to a statement in July.
Before the COVID-19 pandemic, Bodycare was deemed profitable; however, like many retailers, it lost millions of pounds in the financial years afterwards.
It received financial support from the taxpayer in the form of a multimillion-pound loan issued under one of the Treasury’s pandemic funding schemes.
Currently, the business is run by Tony Brown, who has held senior roles at BHS and Beales.
Interpath declined to comment to Sky News, while Bodycare has been contacted for comment.