Hair salon business heading for insolvency
A former franchise brand is facing an unknown future as the hairdressing business that acquired the chain heads into insolvency.
The Queensland based Evolve Salons owns a number of businesses operating under different banners – last year it acquired the award-winning Lattouf Hair & Day Spas chain.
Former Lattouf Hair & Day Spa franchisor Stephan Lattouf told FranchiseBusiness "We had a very successful franchise business of 11 stores. I bought out my franchisees, they all got paid and I sold the business 15 months ago to Evolve."
Evolve Salons operates more than 50 outlets around the country but has run into financial difficulties with directors appearing to have abandoned their posts.
According to Fairfax Media Evolve is “heading into liquidation” after an attempt to float the business failed and the company’s board walked out.
Lattouf said he was partially paid in shares and there was a sum of money due.
"Now the company is in liquidation and I'm $800,000 out of pocket," he said.
Lattouf had continued to supply Evolve Salons with Pure Lattouf product.
According to Fairfax Media, suppliers made moves to take reclaim their products before the administrators took charge.
In some salons locks have been changed and staff locked out; the company’s accounts reportedly have been frozen.
There are about 300 jobs at risk across the salon network.
The Townsville Bulletin reports that the because of the board’s action workers will be unable to claim from the Federal Government’s Fair Entitlements Guarantee scheme any unpaid wages, leave or redundancy pay. These entitlements are only available to companies which are formally insolvent.