The future of the Supercuts and Regis hair salon brands has been secured after a rescue deal was struck with administrators.
Following a Sky News story earlier on Tuesday, it was confirmed that the Bushnell Investment Group had agreed to buy 140 of the 200 outlets placed under threat since their owner, Regis UK, collapsed into administration in October.
Bushnell, led by the entrepreneur Lee Bushnell, made the investment in support of a management buyout, administrators said.
The deal involves the closure of 60 sites – all of which had either shut during the administration or now been closed – with the loss of 200 jobs.
Under the deal, more than 1,000 workers will be retained.
Matt Cowlishaw, joint administrator at Deloitte, said: “We are pleased to have concluded the sale and for being able to preserve a significant number of jobs at two well-known brands.”
The salvaging of a substantial number of jobs represents a rare piece of good news on the high street following another torrid year for retailers, restaurant operators and other chains.
The collapse of Regis UK thwarted a bid by prominent high street landlords to overturn a financial restructuring.
Last December, landlords including British Land and Hammerson filed an appeal to challenge Regis’s plans in the courts.
The proposed restructuring, which was approved by the required majority of creditors in October 2018, would have involved rent cuts of up to 100% at 100 of its sites.
The move to put the business into administration further underlined the fragile relationship that exists between major landlords and retail tenants as dire trading conditions have forced chains to seek compromise agreements with creditors.
Store owners have become dismayed by the deluge of CVAs, bringing the fate of Arcadia Group, Sir Philip Green’s Dorothy Perkins-to-Top Shop empire, to the brink of collapse earlier this year when they threatened to block the tycoon’s rescue plan.
British Land also mounted a legal challenge to the financial restructuring of Monsoon Accessorize, the fashion retailer, but subsequently settled.