Many beauty and fitness businesses have long since lost liquidity and are on the brink of bankruptcy, according to lawyers specialising in restructuring processes. At the end of 2020, the debts of hair and beauty establishments reached PLN 49 million.
According to experts, the new sanitary regime and further restrictions on businesses have hit fitness clubs and gyms particularly hard, which have been in lockdown almost since the first days of the announcement of the coronavirus pandemic in Poland. Cosmetic and hairdressing salons are also in a particularly difficult situation, having once again been completely closed to customers during the ongoing pandemic and thus deprived of any source of income.
If restaurants or hotels can at least partially patch up their severely strained finances, the beauty and fitness industry is completely cut off from earnings in the event of a lockdown. As a result, their financial situation deteriorates extremely quickly, and companies need to respond immediately in the face of extremely difficult circumstances” – said Aleksandra Pakuła, legal counsel at the FKK Law Firm, in information published on Tuesday.
As she pointed out, the terrible situation in the industry beauty At the end of March, the management of the Polish Cosmetics Industry Association reported that even before the lockdown, hairdressing and beauty salons were visited by only about 40-70 percent of the people who visited them before the pandemic. As a result, the sector's turnover fell by at least 30 percent on an annual basis, which in many companies meant layoffs and the threat of bankruptcy.
According to the president of PMR Restrukturyzacje, Małgorzata Anisimowicz, National Register Debts show that during the pandemic, only until December 2020, the debts of hairdressing and beauty salons increased by 30% to almost PLN 49 million. "Today they are certainly much higher, and each additional week of lockdown may have a catastrophic impact on the situation of companies in this sector," she pointed out.
Small and medium-sized enterprises are particularly hard hit, she added. "Currently, it is difficult to find a Court and Economic Monitor without at least a few entries concerning entrepreneurs running hairdressing or cosmetics establishments," she reported.
Due to an increase in the incidence of Covid-19 in Poland, cosmetic and hairdressing establishments, gyms and fitness clubs, among others, have been closed nationwide since Saturday 20 March. The restrictions are in force until 18 April. (PAP)
Małgorzata Anisimowicz – qualified restructuring advisor and president PMR Restructuring Management Board provided a commentary to a publication on the Forsal.pl website devoted to socio-economic issues.
13 April 2021. We invite you to read the full version:" Many beauty and fitness companies on the brink of bankruptcy
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