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Major Australasian cosmetic chain collapses into administration leaving hundreds of jobs at stake

Major Australasian cosmetic chain collapses into administration leaving hundreds of jobs at stake

In a recent turn of events, non-surgical clinic chain Body Catalyst has entered into administration, leaving its future hanging in the balance. The chain currently has 34 clinics across Australia and New Zealand, with 15 in Victoria, nine in New South Wales, five in Queensland, and two in New Zealand.

The Australian Securities and Investments Commission (ASIC) have recently appointed Alan Walker and Glenn Livingstone of WLP Restructuring as administrators on Thursday, December 7 due to the collapse of Body Catalyst, which is attributed to declining revenues amidst a downturn in consumer spending, revealed Walker in a statement to SmartCompany.

With over 40 Body Catalyst locations appointed Australia-wide, the situation is challenging, but Walker expressed determination to salvage the business and preserve jobs.

Founder Samantha Barakat Light, envisioned making non-surgical treatments accessible to everyone. Despite the current setback, Body Catalyst clinics continue to operate, offering treatments such as fat freezing, HIFU, and skin rejuvenation.

The first creditors’ meeting is scheduled for December in Sydney. Administrator Alan Walker, from WLP Restructuring, assured news.com.au that the business is currently operational as urgent assessments are underway to gauge the financial viability of each clinic.

Walker emphasised the early stage of the restructuring process, expressing hope to save jobs and as many clinics as possible.

Walker disclosed that the company faced challenges earlier this year, experiencing a significant drop in revenue due to a cost of living crunch impacting its clients.

Cosmetic procedures, deemed a “sensitive spend decision,” suffered as consumers cut back on discretionary spending. The company also grappled with fixed overhead costs associated with operating a chain of its size.

In May, Body Catalyst closed at least eight locations, with news.com.au investigations suggesting the closure of up to 17 locations in a last-ditch effort to stave off financial troubles.

Additionally, founder Samantha Barakat Light stepped down as CEO in May, transitioning to a behind-the-scenes role focused on the company’s long-term vision and strategy.

The situation remains fluid, with Mr. Walker emphasising that it is still early days as he assesses the company’s financial position.

The fate of Body Catalyst hangs in the balance as administrators work diligently to navigate the challenges and chart a course for its future.

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