Bodycare Collapses Further Shedding 30 Stores and 235 Jobs
The troubled Bodycare retail chain continues to undergo significant restructuring, with administrators announcing an additional 30 store closures and the loss of 235 jobs. This latest development follows an earlier round of closures affecting 32 of its outlets, bringing the total number of stores shut down to 62 since the company's collapse. Cumulatively, these actions have resulted in 685 job losses across the UK within a few weeks.
Despite these extensive closures, there remains a glimmer of hope for a portion of the business. A spokesperson for the administrators confirmed that "interest from a number of parties" has been received regarding the remaining 85 stores. The hope is that these units will continue to operate under new ownership. The newly announced closures are set to be executed swiftly, with 14 stores ceasing operations by September 16, and the remaining outlets closing their doors shortly thereafter.
Explaining the necessity of these further retrenchments, the administrators' spokesperson stated, "Unfortunately, given the shortage of stock and costs associated with operating stores, it is no longer viable to continue to trade all 115 stores retained on appointment." This highlights the operational challenges and financial pressures that have plagued the business, making it untenable to maintain the previous level of operations.
The path to administration for Bodycare began in late August when it became clear the company was on the brink of collapse, actively seeking a buyer to avert formal insolvency. However, as is frequently observed in such situations, a business often becomes more attractive to potential acquirers post-administration. This is primarily because the administrative process allows for the easier shedding of staff and the more straightforward exit from burdensome store leases, significantly reducing the liabilities that would otherwise deter buyers of a "going concern."
Until its administration, Bodycare was under the leadership of Tony Brown, former chief of Beales, and was owned by Baaj Capital. The chain had a history of long-standing success, but it was profoundly impacted by the COVID-19 pandemic. Despite the subsequent reopening of UK retail, Bodycare was unable to fully recover from the severe blow, ultimately leading to its current predicament. Its difficulties were also recently cited by Warpaint London as a contributing factor to their own profit warning, underscoring the interconnectedness of the retail ecosystem.
