Regis and Supercuts salon owners seek rent restructure from landlords
PUBLISHED: 16:25 12 October 2018 | UPDATED: 16:34 12 October 2018
© ARCHANT NORFOLK 2011
Regis UK Limited, which owns Regis Salons and Supercuts, has applied for a Company Voluntary Arrangement (CVA), asking for a lease restructure of its 220 salons.
Despite this, the CVA states there are no salon closures, and over half the portfolio foes not seek to have any reduction in rental costs.
Regis UK has a number of salons across East Anglia, with Supercuts in Norwich’s Castle Mall, and in King’s Lynn, as well as a site in Chemsford.
There are also Regis salons in Jarrolds department store in Norwich, as well as salons in Colchester and Chelmsford.
The CVA requires the support of the company’s creditors, with a 75% vote in favour required to pass the vote, which is typically approved as it often provides a better outcome for creditors, when compared to the alternative – closure of the business.
Regis UK says that it is making the move to restructure its cost base and allow for investment to drive growth.
The plan has been discussed with the British Property Federation (BPF), who represent commercial landlords, and comments from the BPF have been incorporated into the proposal that is to be put to creditors on October 26.
Grant Thornton UK LLP’s Birmingham based Partner, Eddie Williams, will act as nominee for the business and said: “The company has put forward a proposal to its creditors that seeks to amend some terms in its lease obligations and stabilise the business. “As part of this, there are no planned salon closures and as such, no employee redundancies are planned, which is a positive in the context of the challenges the high street has seen over the last 12 months and which continue to be prevalent.”