The Bodycare retail chain in the UK on the brink of bankruptcy: 1500 jobs at risk.

According to The Sun: Bodycare, a retailer with a network of 149 stores, has announced sales at five points of sale and closed its website due to fears of entering administration.

The company is likely to appoint an administrator from Interpath Advisory as early as Friday, which could threaten over a thousand jobs.

Bodycare, which started its journey as a market stall in Lancashire in the 1970s and became popular for selling major brands like L’Oreal and Nivea, is now facing difficulties post-pandemic.

For several months, the company has worked with consultants from Interpath and its owners, Baaj Capital, to find a way out of the difficult situation, according to Sky News.

The appointment of an administrator will seemingly prompt Interpath to actively seek buyers for parts of the business.

After the administrator is appointed, the company will have to decide whether it can be saved, sold, or closed completely.

Unable to withstand the difficulties, some stores have already staged sales or closed altogether.

According to local news, in Wrexham, Beverley, Morecambe, and Yorkshire, stores have already cleared their shelves.

The store in Swindon has also begun sales as employees prepare for the worst.

Store employees told the Swindon Advertiser that if a new buyer is not found by Monday, September 8, the store will close, leaving staff without jobs.

A similar situation is observed at the Bodycare store in Rhiw.

The Bodycare website is also closed, and customers see the message: “Sorry, the store you are looking for is currently closed. Please try again later.”

Bodycare has over 149 stores across the UK and employs around 1500 people.

The company is led by Tony Brown, a retail veteran who previously worked at BHS and Beales.

More troubles on the streets

This news comes amid tough times for street retail, where large retailers such as River Island and New Look are also facing store closures and job cuts.

River Island plans to close up to 34 stores in January as part of radical reforms to improve its financial position.

Meanwhile, New Look is in talks with consulting group Rothschild regarding a strategic review of its operations, which may lead to a sale.

Poundland is also undergoing serious changes following the sale of Gordon Brother for 1 pound in June.

The company was rescued from bankruptcy last month when the High Court approved a restructuring plan just days before it could run out of money.

The plan includes closing 68 stores, reducing staff by 1000 people, and closing two warehouses that will affect 350 employees.

Consumers will no longer be able to shop on the Poundland website from September 16, and the loyalty program will also end on the same day.

Last month Claire's announced it would enter administration and halted online orders for its customers.

In addition, the fashion brand Monki, owned by H&M, closed its last stores on the streets in August.

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The current situation at Bodycare and other retail chains raises concerns among consumers and workers as it is not just about store closures but also the threat of job losses. Given the overall economic difficulties and reduced consumer activity, it is important to monitor the further developments in the retail sectors.