When major UK cosmetic company Sk:n collapsed this week, it reportedly came as a surprise to staff and customers alike.
The 34-year-old Birmingham-based business had 70 sites around the country and employed hundreds of people at branches across cities including London, Manchester, Bristol, Liverpool and Cardiff. The business, which was acquired by private equity firm TriSpan in 2019, offered a variety of dermatological treatments from laser hair and tattoo removal to skin peels.
A post on Sk:n’s website gave no other explanation than that it had ceased trading after failing to secure investment. Its telephone number also issues a recorded message repeating the same information.
It said: “Unfortunately as of July 17, the SK:N Group, including SK:N Clinics, the Harley Medical Group, Skinbrands, The Skin Experts and ABC Medical has ceased trading.”
According to customers, appointments were cancelled at short notice without refunds and staff have flocked to social media to claim they lost their jobs without warning – and have not yet been paid.
Most, it seems, were unaware there were any financial issues at all. But according to latest Companies House accounts for Lasercare Clinics Harrogate Limited (trading as Sk:n), the business had £35m of debt that was due to be repaid in full by 2026. Public documents for the financial year ending August 31, 2022 – the latest available – show the company made a £7.2m loss before tax in 2021 and a £4.5m loss in 2022.
Many of Sk:n’s treatments are funded directly by patients, which the company said left it “exposed to economic cycles”. The Covid pandemic, which hit the beauty industry hard, may well also have played its part in Sk:n’s downfall.
Lasercare Clinics Harrogate (Sk:n) is part of the Hebe Topco Group – a non-trading company – and Sk:n’s ability to operate was linked directly to this group’s position, the documents on Companies House stated. It was also dependent on funding from a holding company called Hebe Bidco to meet its liabilities.
According to Companies House, Hebe Topco had net liabilities of £62.4m for the financial year ending August 31, 2022, and made a loss after tax of £16.2m.
On Thursday (July 18), winding-up orders were made against five companies from the Sk:n Group. The court appointed the Official Receiver, Joseph Sullivan, as liquidator of Lasercare Clinics (Harrogate); LCHMG Limited; ABC Lasers; Cosmeceuticals; and Cellite Clinic.
Like this story? Why not sign up to get the latest business news straight to your inbox.
The companies in liquidation traded under the following brands: Sk:n, HMG, Skinbrands, The Skin Experts, ABC Medical and ABC Lasers. The remaining Sk:n Group companies continue to trade as normal.
TriSpan has been contacted for comment.