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 retailer fell over in September with an initial 32 stores closed and around 450 employees being made redundant.
That move was followed a few days later when it was announced that all remaining stores would also shut their doors with the loss of all remaining jobs.
Nick Holloway, Chris Pole and Mike Leeds from Interpath had been appointed joint administrators to G.R. & M.M. Blackledge plc, which traded as Bodycare.
Now, a new document filed by Interpath with Companies House has revealed how much the firm behind Bodycare owed to its creditors when it collapsed.
According to the document, there is an estimated deficiency for unsecured creditors of £29.8m.
Interpath added that it is “highly unlikely” there unsecured creditors will receive any of their money back.
HMRC is owed £3m, with administrators stating that they are “uncertain” whether there will be a dividend.
JDS52 Limited, which is owed £3.2m, and Baaj Finance, which is owed £300,000 are also unlikely to receive any of their money back.
Bodycare was founded in 1970 and remained a family-owned business until 2020 when it was acquired by JDS52, an entity controlled by Jaswinder Singh.
Interpath added that Aurelius is likely to suffer a shortfall on the £1.4m it is owed.
However, the administrators said that Bodycare’s employees, who are owed a combined £2.2m, will receive a dividend.
After toting up how much Interpath can raise through the sale of assets and how much is owed to creditors, the administrators said there remains a total estimated deficiency regarding creditors of £34.9m.
Before collapsing, Lancashire-headquartered Bodycare had operated 147 stores and employed around 1,400 people.
Bodycare’s abandoned IPO
Outlining the events that led up to Bodycare entering administration, Interpath said that following its takeover the company focused on opening new stores, controlling stock and releasing own brand products.
This included expanding its market presence into the South of England.
However, Interpath said the success of this strategy was constrained by a number of factors including a “challenging retail environment, outdated IT systems and limited online presence”.
Bodycare did undergo a significant in and infrastructure upgrade in 2023 but “integration issues and delays hindered the realisation of expected efficiencies”.
The business continued to open new stores and prepared for an initial public offering (IPO) in 2024 but that plan was aborted.
Interpath said that decision led to a shortfall in funding for store expansion.
It added that by 2024, “creditor balances had grown significantly and supplier confidence had fallen”.
Interpath also said: “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 entered into a revolving stock facility with Aurelius to support its working capital requirements which was capped at £7m.
However, Interpath said 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”.
Possible rescue on the cards
According to Interpath’s document. it received direct expressions of interest from 14 parties.
However, “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”.
It has since been reported by The Times that Charles Denton, who rescued The Body Shop last year, is leading a bid for the company.
Prior to entering administration, City AM reported that Bodycare had posted a turnover of £132.5m for 2024, up from £128.8m, while its pre-tax loss reduced from £1.7m to £1m.
At the time, Bodycare blamed the government for creating “too much risk and uncertainty”.
It added that “the current climate of increased costs and legislation” was impacting its growth plans.
Bodycare has also said that government policy on the winter fuel allowance and the uncertainty around future tax rises, especially National Insurance, led to Christmas trading not meeting its expectations.