Hairdressing chain with 53 outlets collapses with just $3.83 left in one bank account
18 November 2015
A hairdressing chain that previously raised more than $8.7 million from investors and grew to 53 outlets has plunged into liquidation, with just three outlets still trading.
Brendan Nixon of Stanley Morgan Chartered Accountants was appointed as provisional liquidator to Evolve Salons on November 9, after the company’s three directors all resigned on October 28.
Evolve Salons was founded two year ago and is based in Queensland. The majority of its salons were located on Australia’s east coast.
The Australian reports that company accounts filed with the court this week show Evolve Salons raised more than $8.7 million from investors for its roll-out strategy, which involved spending $9.82 million buying other hairdressing salons.
These hairdressing businesses included Bach Hair, Lattouf Hair and Day Spa, Bossy Hair, Meika, tmh and Legends Hairdressing.
Evolve Salons employed approximately 300 people across 53 salons.
But by September 30, the company accounts provided to the court showed the business had less than $4 in one of its bank accounts, while another was overdrawn by $487.
The Australian reports just three of the group’s 53 outlets are still trading.
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