Evolve Salons has gone under after accruing millions of dollars in debt. The Queensland-born chain had grown to 53 outlets across New South Wales, Victoria and Queensland after raising more than $8.7 million from its initial roll-out strategy. However only 3 of those establishments are now still trading, which means around 300 Australian hairdressers are out of work.
The salon chain includes many salons that operate under different names, including Bach Hair, tmh salons, Mieka Hairdressing, Bossy Hair, Lattouf Hair & Day Spa and dozens of others. The company’s failed attempts to list on the stock exchange contributed to its huge loss, with financial records showing it had registered a loss of $2.66 million in 2015 and $2.7 million in 2013. By September 30 this year, company accounts show that one of the company back accounts had less than $4 in it, while another was hundreds of dollars overdrawn.
The chain appointed provisional liquidators on November 9, and all three of the company’s directors resigned in late October. This includes managing director Wes Coote, non-executive director and chair Stephanie Daveson and non-executive director Craig Chapman, who reportedly stands to lose approximately $1 million from loans he made to the company.
Hundreds of hairdressers country-wide have been left in the lurch, with products seized by suppliers, company accounts frozen and locks on salon doors changed. Hairdressers have apparently been barred from talking to clients or the media or risk losing whatever entitlement the administration can recover. Some have reported being notified by email only a day prior to the closure of their salon.
It is these hairdressers that we are thinking of during this time.
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