Bodycare owed more than £30m when it collapsed into administration with the loss of around 1,400 jobs, it has been revealed.
The high street health and beauty chain went under in September with an initial 32 outlets shuttered and approximately 450 staff made redundant, as reported by .
This was followed days later by confirmation that all remaining stores would also close permanently, resulting in the loss of all outstanding positions.
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Nick Holloway, Chris Pole and Mike Leeds from Interpath were appointed joint administrators to G. R. & M. M. Blackledge plc, which operated as Bodycare.
A fresh document lodged by Interpath with Companies House has now disclosed the extent of debt owed to creditors when the company went bust.
The filing shows an estimated shortfall for unsecured creditors of £29.8m.
Interpath noted that it is "highly unlikely" unsecured creditors will recover any of their outstanding funds.
HMRC is owed £3m, with administrators indicating they are "uncertain" whether there will be a dividend payment.
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JDS52 Limited, which is owed £3.2m, and Baaj Finance, which is owed £300,000, are also unlikely to recoup any of their outstanding debts.
Bodycare was established in 1970 and remained under family ownership until 2020 when it was purchased by JDS52, an entity controlled by Jaswinder Singh.
Interpath noted that Aurelius is likely to face a shortfall on the £1.4m it is owed. Nevertheless, the administrators confirmed that Bodycare's workforce, collectively owed £2.2m, will receive a dividend payment.
Following calculations of potential asset sale proceeds against outstanding creditor obligations, the administrators revealed a total estimated shortfall of £34.9m regarding creditors.
Prior to its collapse, the Lancashire-based Bodycare operated 147 outlets and employed approximately 1,400 staff members.
Bodycare's abandoned IPO
Detailing the circumstances leading to Bodycare's administration, Interpath explained that post-acquisition, the company concentrated on launching new outlets, managing inventory and introducing own-brand merchandise.
This strategy encompassed broadening its market footprint into Southern England.
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Nevertheless, Interpath noted the effectiveness of this approach was hampered by several elements including a "challenging retail environment, outdated IT systems and limited online presence."
Bodycare did complete a substantial infrastructure and system overhaul in 2023, though "integration issues and delays hindered the realisation of expected efficiencies."
The retailer persisted with new store launches whilst preparing for a stock market flotation in 2024, but this proposal was subsequently abandoned.
Interpath stated this decision resulted in a funding gap for retail expansion plans.
The firm added that by 2024, "creditor balances had grown significantly and supplier confidence had fallen". Interpath also stated: "In addition to the above, working capital was adversely impacted by significant amounts due to the company from related party companies which remained unpaid."
In June this year, Bodycare secured a revolving stock facility with Aurelius to bolster its working capital requirements, which was limited to £7m.
Nevertheless, Interpath noted that "reducing credit terms from suppliers and the significant outstanding related party debtor balances restricted the company's ability to purchase stock and this subsequently limited the availability of funding under the facility."
Potential rescue emerges
According to Interpath's documentation, it received direct expressions of interest from 14 parties.
Yet, "due to the poor trading history of a number of the stores and the significantly depleted volume of stock across all stores, no parties put forward an offer to acquire and continue trading any of the stores."
The Times has subsequently reported that Charles Denton, who saved The Body Shop last year, is spearheading a bid for the business.
Before entering administration, City AM reported that Bodycare had achieved a turnover of £132.5m for 2024, rising from £128.8m, whilst its pre-tax loss narrowed from £1.7m to £1m.
At that time, Bodycare criticised the government for generating "too much risk and uncertainty."
The retailer added that "the current climate of increased costs and legislation" was hampering its expansion plans. Bodycare has also indicated that government policy on the winter fuel allowance and the uncertainty surrounding potential tax increases, particularly National Insurance, resulted in Christmas trading falling short of its expectations.