Hairdressing chain Supercuts is on the brink of collapse less than a year after bosses attempted to persuade landlords to give the company heavy rent cuts.
The business has 1,400 employees across 223 salons and it is thought that the sites will continue to trade while a potential buyer is sought.
Restructuring experts at Deloitte are understood to be on standby for an appointment, with a formal announcement due on Friday morning, the PA News Agency understands.
Supercuts has been struggling for the last few years and went through an insolvency process known as a Company Voluntary Arrangement (CVA) in 2018.
It meant the company, which is owned by Regis UK, could cut its rents in an attempt to stay afloat.
The CVA process has been widely 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, instead of only being used to prevent a firm from collapsing.
Regis said at the time that a “perfect storm” of factors, including falling customer numbers and higher wages, had hurt the business.
The CVA saw rent cuts of up to 100% at more than 100 of Regis’s 223 stores and concessions.
Deloitte declined to comment. Regis could not immediately be reached for comment.