Body Catalyst beauty clinics collapse into administration
Body Catalyst, a spa chain offering non-invasive beauty treatments across more than 40 locations, has collapsed into administration.
Body Catalyst, a spa chain offering non-invasive beauty treatments across dozens of locations, has collapsed into administration.
Dozens of Body Catalyst locations across the country came under the administration of Alan Walker and Glenn Livingstone of WLP Restructuring last Thursday, according to the Australian Securities and Investments Commission (ASIC).
The collapse appears to represent the entirety of Body Catalyst’s company-owned network, including 29 clinics operating across Victoria, New South Wales, and Queensland.
BC Leasing Group Pty Ltd and Cryo Clinic Pty Ltd, both related to Body Catalyst, are among more than 40 entities included in the administration.
Declining revenues during a consumer spending downturn are to blame for the collapse, Walker told SmartCompany on Tuesday.
“There’s obviously a lot of factors at play in the wider economy, driving people’s decisions, and it’s had a significant impact on the group’s revenue,” he said.
“When you’ve got a business of this size, there’s quite a few fixed overheads, which are quite sticky.
“As your revenue comes off, you can’t flex those fixed costs easily.”
Unlike other businesses with footprints of its size, Body Catalyst maintained ownership of its entire network.
The company closed several clinics in May this year, but company leadership sought a restructure to save the financially viable parts of the business.
Now, the administrators intend to continue trading for the remaining clinics through the restructuring process.
“The customers are obviously a big factor,” Walker added.
“We just want to reiterate that the clinics are still open.
“And those appointments will continue to be serviced as best as the company can, and we will shortly provide communications to those customers.”
While the administration is still in its early phases, Walker said the goal is to “save as much of the business and as many jobs as we possibly can”.
Body Catalyst was founded in 2013 by Samantha Barakat Light, who launched the enterprise with a single clinic in Bondi Junction.
The business initially focused on fat freezing, fat cavitation, skin tightening, and cellulite treatments, but grew to provide treatments like non-surgical facelifts and ‘notox’ facial sessions for men and women.
“We believe the best thing anyone can have is a positive self-image, especially about your body,” the company website states.
The first meeting of creditors will take place on December 19 at WLP Restructuring’s Sydney office.
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