UK brands that have been saved from administration

Many beloved high street stores have come and gone in recent years, with many falling into administration since the COVID-19 pandemic.

Administration is never where a business wants to be, but when a company becomes insolvent, employees are at risk of redundancies, suppliers and creditors may not be fully repaid or the company could face total liquidation.

While not every business has survived this turmoil, others have been lucky enough to keep running thanks to new investments, a successful restructuring or a change in ownership.

According to the Retail Gazette, 38 major retailers went into administration last year. While it didn’t reach a record high amount – such as with the 2008-2009 recession – it was still a significant number, serving as a stark reminder of the challenges businesses have faced since the pandemic, coupled with the cost of living crisis that has affected consumer spending and increased operational costs.

Fortunately, these companies have had a happier ending than others and have managed to turn things around and avoid complete closure. So where did they go right – after going wrong?

1. HMV

HMV (short for His Master’s Voice) has faced administration twice, both in 2013 and 2018. During its first round, all 4,350 of its UK staff were at risk of redundancies. Restructuring firm Hilco UK later acquired the company, taking it out of administration and saving 25 shops from closure and 2,500 jobs.

But just five years later, HMV fell into administration yet again, with Hilco UK citing a “tsunami” of competition as the reason. Canadian record shop Sunrise Records announced it had bought the company for an undisclosed amount in 2019. 

Since then, HMV hasn’t fallen into administration again and has managed to bounce back, including the reopening of its flagship store in Oxford Street. The company has found success by capitalising on the resurgence of vinyl, which has become a major part of its business. It also embraced the growing demand for pop culture merchandise and with a strong online presence, such as TikTok, it’s been able to attract a diverse audience through its social media marketing.

2. The Body Shop

Another tale of post-pandemic strife, The Body Shop went into administration in February 2024, putting over 2,000 jobs at risk and closing 85 of its stores permanently.

The ethical beauty brand faced many financial difficulties, including declining sales in 2023, resulting in decreased revenue of 13.3% in the third quarter. Moreover, after being acquired by German private equity firm Aurelius, the company struggled with its financial obligations, including rent, supplier payments and high operating costs. 

However, The Body Shop was rescued from administration in September 2024 by specialist investment firm Aurea Group. Charles Denton, the CEO of the company, told staff that The Body Shop was “back for good” and reported a £2 million profit in sales in the first three months under its new ownership. That being said, a source close to the company warned about reading too much into the results, commenting that while they may be positive at first glance, the business now has a smaller operation and many of its sales could’ve been supported by discounts and stock clearance.

3. Typhoo Tea

Once a staple of British teacups, Typhoo fell into administration in November 2024 after facing declining sales, deepening losses and increasing debts. In the twelve months up to September of the same year, it generated unaudited revenue of around £20 million, with a loss of £4.6 million before tax.

First established all the way back in 1903, Typhoo was the first pre-packaged tea brand in the UK, quickly becoming a household name for generations of tea drinkers. However, with stiff competition from the likes of PG Tips and Twinings, as well as changing consumer preferences and the rise of premium tea brands, Typhoo struggled to maintain its market share.

Fortunately, Typhoo’s administration woes only lasted for a month, as the company was bought out by vape manufacturer Supreme for £10 million. 

Sandy Chadha, chief executive of Supreme, commented: “I believe Typhoo Tea will thrive under our ownership, further benefiting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for the business.”

4. Carpetright

Carpetright has faced a colossal amount of trouble over the last few years and 2024 seemed to really pull the rug out from under the company’s feet. Having been hit by a serious cyber attack – resulting in not being able to trade online or in-store for over a week – Carpetright entered administration in July 2024, closing all 273 of its stores.

According to The Guardian, the company collapsed with debts of almost £345 million. This included carpet suppliers Condor and Betap, UK tax authorities and even its own employees.

But in a strange twist of fate, Tapi Carpets – one of Carpetright’s major competitors – bought out the chain at the end of the month. As part of its rescue deal, Tapi acquired 54 Carpetright stores, along with 300 jobs. However, 1,893 of its employees who weren’t included in the deal were reported to be made redundant.

5. Homebase

Homebase, one of the UK’s most popular DIY retailers, entered administration in November 2024, mainly due to a combination of financial struggles and poor strategic decisions.

Homebase was acquired by Australian retail group Bunnings in 2018, which set out to revamp the company, including changing its business strategy. Bunnings attempted to rebrand Homebase and introduce its own operating model, but this move wasn’t well-received by most customers, and was dubbed as the “most disastrous retail acquisition ever”. What’s more, its sales were also affected following the pandemic, reporting a £84.2 million loss in the year to January 2023.

But while the company reduced losses by 70% since that time, it fell into administration in November 2024. Fortunately, it wasn’t long before it was sold to retail group CDS, acquiring 70 Homebase stores with plans to rebrand them to The Range. However, non-CDS-acquired stores are set to close at the end of February.

Despite the ups and downs, these businesses have shown that going into administration doesn’t always mean the end of the road. While some have had to downsize or change ownership, they’ve managed to stay afloat. Of course, not every company is as lucky, but for now, these brands are still standing – just in a slightly different way than before.