Supercuts: Hairdressing chain enters administration, putting 1,400 jobs at risk

Company's 223 salons to continue trading as Deloitte takes reins

Supercuts' 223 salons are expected to remain open during the administration process (Google Street View)

Hairdressing chain Supercuts is on the brink of collapse, with 1,400 jobs at risk.

The company’s owners, Regis UK, is set to appoint administrators to look for a buyer on Friday morning.

Its 223 salons are expected to continue to trading as restructuring experts at Deloitte consider options for the future of the business.

Supercuts has been struggling for the last few years, although industry sources told Sky News they expected a buyer for the chain to be found.

Last year the company went through an insolvency process known as a Company Voluntary Arrangement (CVA), which meant it could cut rent payments to landlords in an attempt to stay afloat.

The CVA process has been used by several high street names in recent years, including Arcadia, New Look, Mothercare and Carpetright.

But it has faced criticism from some landlords who claim it is being used as a way to cut rents, rather than to prevent a firm from collapsing.

Regis last year said a "perfect storm" of factors, including falling customer numbers and higher wages, had hurt the business.

The CVA brought rent cuts of up to 100 per cent at more than 100 of Regis's 223 stores and concessions.

Supercuts entering administration comes after the British Retail Consortium said 85,000 jobs at been last at UK high street retailers last year.

Deloitte declined to comment and Regis could not immediately be reached.