A major cosmetic chain has abruptly shut more than 20 clinics as it teeters on the brink of collapse.
Body Catalyst will permanently close 26 clinics a month after the company was plunged into voluntary administration.
The beauty chain owes $5.3 million to unsecured creditors and a further $3.2 million owed to secured creditors, according to its administrators from WLP Restructuring.
Creditors voted at a meeting on Tuesday to place the closed clinics into liquidation, months after another eight locations shut their doors.
The fate of the company’s 16 remaining clinics hang in the balance and could be decided at a second creditor’s meeting next week.
Up to 85 staff have an anxious week ahead of them waiting to find out if they still have a job.
Body Catalyst has shut down 26 clinics after the company recently went into voluntary administration
Founder Samantha Barakat Light (left) hopes the 16 remaining clinic will remain open
Founder Samantha Barakat Light remains hopeful that the struggling cosmetic chain still has a future.
‘We are confident in the new structure for Body Catalyst that’s being put to creditors next week,’ she said in a statement.
The administrators are now focused on saving the 16 clinics that remain open.
It has a proposed a Deed of Company Arrangement, an alternative form of administration which enables a company to restructure itself and facilitate its ongoing corporate existence and trading ability, and deal with the company’s creditors’ existing claims under a formal arrangement.
It’s understood Body Catalyst may have been trading insolvent since at least June last year due to growing tax debts and lower sales as a result of decreased discretionary consumer spending as the cost of living crisis continues.
Up tom 85 Body Catalyst staff will find out next week if they still have a job
Ms Barakat Light, who stepped down as the struggling company’s chief executive last May recently cited the challenging economic landscape for the company struggles but remained committed to its long-term sustainability.
‘Despite these challenges, we are determined to emerge stronger and more resilient,’ she said in December.
‘As part of our commitment to a brighter future, we are reorganising our operations to create a leaner and more efficient business model.
‘This restructuring will enable us to refocus on delivering high-quality services to our clients in key locations, whilst navigating the changing economic climate.
‘We appreciate the support of our loyal clients and partners during this transitional period, and we look forward to serving you with renewed vigor and commitment in our refined and revitalised business model.’
Founded in 2015, the cosmetic chain operates across NSW, Victoria and Queensland, as well as New Zealand.
The company describes itself on social media as leaders in non-surgical body and skin treatment with more than 20,600 Instagram followers.
Treatments include fat freezing, cellulite reduction, non surgical facelifts, Botox, skin rejuvenation, skin tightening, body contouring, pelvic floor strengthening, muscle definer and fat cavitation.
The struggling company remains active on social media with regular posts spruiking its services and testimonies from clients.
Established in 2015, Body Catalyst (clinic pictured) hails itself as a leader in non-surgical body and skin treatments