Clients and staff cut adrift in Evolve Salons collapse
The Courier Mail
13 November 2015
COLLAPSED hairdressing group Evolve Salons was only a year ago planning to list on the stockmarket as part of an ambitious national expansion plan.
Now the Brisbane-based salon chain is in liquidation, abandoned by its board of directors, leaving 300 people out of work and thousands of clients out in the cold.
Australia’s largest hair salon chain, which owns 53 salons, of which about 35 are in Queensland, under the Bossy Hair, Bach, tmh, mieka and Legends Hairdressing brands, shut its doors last week with staff instructed not to notify clients or risk losing any entitlements administrators may recover.
It was a sharp tumble for the Queensland salon giant, which had only two years ago launched an aggressive growth strategy. According to company accounts, it forked out $9.82 million buying salons.
But signs of trouble started to emerge when Evolve hinted that it was having trouble repaying its $6 million bank loans in company financial reports in December 2014, despite plans to push ahead with a public share offering.
Labelling it a future “risk” the company report said a default on its loans could mean “the Group will be unable to receive a favourable outcome when it seeks to refinance the facility with the bank”.
It had hoped to raise more funds in a float to further its acquisitions. But it came undone after salons were proven to be less profitable than anticipated, running up losses of more than $2.66 million in the year to 2014 and $2.7 million in 2013.
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