A national cosmetic chain is on the brink of financial collapse and a local beauty store may be liquidated to cover its debts.
Body Catalyst, which has a store in the Kotara Westfield, has been forced to appoint an administrator to manage its $8.5 million debt.
Creditors voted to liquidate 26 clinics that had already been closed. The fate of the remaining 16, which includes the Kotara store, will be decided next week.
A spokesperson for administrator WLP Restructuring said by liquidating the 26 stores that had closed, the business would be able to focus its attention on saving the remainder.
Body Catalyst founder and former chief executive Samantha Barakat Light was the existing stores would be able to stand on their own, allowing the chain to scrape its way out of financial trouble.
"We are confident in the new structure for Body Catalyst that's being put to creditors next week," she said,
"The Body Catalyst group has a strong foundation, loyal staff, and supportive clients."
The non-surgical cosmetic chain provides treatments such as Botox, skin rejuvenation, fat freezing, cellulite reduction and pelvic floor strengthening, and has stores in NSW, Victoria and Queensland.
The future of the 85 staff is waiting on next week's decision. The business is hoping the remaining stores will be retained and the administrator estimates creditors will receive nothing if they put the stores in liquidation.
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