in

Body Catalyst suddenly closes more than 20 stores as major beauty chain teeters on the brink of collapse

A major cosmetics chain has suddenly closed more than 20 clinics as it teeters on the brink of collapse.

Body Catalyst is to close 26 clinics permanently, a month after the company was placed into voluntary administration.

According to its administrators from WLP Restructuring, the cosmetics chain owes $5.3 million to unsecured creditors and another $3.2 million to secured creditors.

Creditors voted to liquidate the shuttered clinics at a meeting on Tuesday, months after another eight sites closed their doors.

The fate of the company’s 16 remaining clinics hangs in the balance and could be decided at a second meeting of creditors next week.

Up to 85 staff face a tense week ahead as they wait to find out if they still have jobs.

Body Catalyst has closed 26 clinics after the company recently entered voluntary administration

Founder Samantha Barakat Light (left) hopes the remaining 16 clinics will remain open

Founder Samantha Barakat Light is still hopeful that the beauty chain still has a future.

«We are confident about the new structure for Body Catalyst, which will be presented to creditors next week,» she said in a statement.

Administrators are now focusing on saving the 16 clinics that remain open.

It proposed a company arrangement agreement, an alternative form of administration that allows a company to restructure and facilitate its continued existence as a company and trading capacity and to deal with the company’s existing creditors’ claims under a formal arrangement.

It is understood that Body Catalyst may have been insolvent since at least June last year due to mounting tax debts and lower sales due to reduced discretionary consumer spending as the cost of living crisis continues.

Recommended Article
Hulk Hogan comes to the aid of a young woman whose car has OVERturned on the highway

85 Body Catalyst employees will find out next week if they still have jobs

Ms Barakat Light, who stepped down as chief executive of the struggling company last May, recently said the company was facing a challenging economic environment but remained committed to its long-term sustainability.

«Despite these challenges, we are determined to become stronger and more resilient,» she said in December.

“As part of our commitment to a better future, we are reorganizing our operations to create a leaner and more efficient business model.

“This restructuring will allow us to refocus on providing high-quality services to our clients in key locations while navigating the changing economic climate.

«We appreciate the support of our loyal clients and partners during this transition period and look forward to serving you with renewed vigor and commitment in our refined and revitalized business model.»

The cosmetics chain was founded in 2015 and operates in NSW, Victoria and Queensland as well as New Zealand.

The company bills itself as a leader in non-surgical body and skin care on social media with over 20,600 followers on Instagram.

Treatments include fat freezing, cellulite reduction, non-surgical facelifts, botox, skin rejuvenation, skin tightening, body contouring, pelvic floor strengthening, muscle definition and fat cavitation.

The struggling company remains active on social media and regularly posts its services and client testimonials.

Founded in 2015, Body Catalyst (pictured in clinic) prides itself as a leader in non-surgical body and skin treatments.

What do you think?

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

GIPHY App Key not set. Please check settings

Robert Irwin and Rorie Buckey look in love at Disneyland during a romantic trip to America

Love Island All Stars viewers savage the facets of Luis Morrison as he pleads with Demi Jones to stay away from the grafting father-of-two: ‘Did he have those turkey teeth in series one?’