The owner of high street salon Supercuts has fallen into administration, putting around 1,200 jobs at risk.
Regis 海角视频, which manages 100 Regis salons and 220 Supercuts branches, has appointed audit and consultancy firm Deloitte as administrators.
Rob Harding and Matt Cowlishaw, restructuring partners at Deloitte, will oversee the administration of Regis 海角视频 and its holding company International Beauty.
All the company's branches will continue trading while the administrators work out options for the business. No redundancies or store closures have been announced.
The administrators said Regis 海角视频 had “suffered” from changes in consumer behaviour and reduction in footfall, particularly in shopping centres where a number of salons are located.
Material inflation in its cost base has also negatively impacted trading performance, according to Deloitte.
'The retail trading environment in the 海角视频 remains extremely challenging'
Regis 海角视频 proposed a Company Voluntary Agreement (CVA) - a controversial insolvency process which allows retailers to shut stores and slash rents - in December 2018.
However, despite a successful vote from creditors, it was challenged by a number of landlords.
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Mr Harding explained: “The retail trading environment in the 海角视频 remains extremely challenging and Regis 海角视频 Limited had been seeking to address this through a restructuring of its business.
“Unfortunately, these trading challenges coupled with the uncertainty caused by the legal challenge to the CVA have necessitated the need for an administration appointment.
"This in order to provide protection for the business whilst restructuring and sale options are fully considered and explored.
“The group operates two very strong brands and we are working with all key stakeholders to stabilise the situation and provide the best solution possible. We would like to thank the group’s employees and other key stakeholders for their ongoing support at this difficult time.”
Supercuts was founded in the US in 1975 by Geoffrey M. Rappaport and Frank E. Emmett.
It is now owned by Regis, which also owns Regis Salons, Mia & Maxx, MasterCuts, Cost Cutters, SmartStyle, and First Choice Haircutters in the US and Canada.
The news comes as report into the retail sector by the British Retail Consortium found that 85,000 jobs were lost in the industry last year.