Jobs are set to be saved across Body Catalyst sites after it was announced this week that a Deed of Company Arrangement (DOCA) has been accepted.
This will result in the continued operation of 16 clinics across New South Wales, Victoria, and Queensland. 85 staff will also remain employed across The Body Catalyst Group (The Group). In a press statement on the news, it was said that all staff made redundant during the restructuring process will receive entitlements in full, with a return to unsecured creditors to be realised.
The Deed of Company Arrangement relates to 16 entities, each representing one clinic that will remain in operation. Together, these 16 entities comprise the restructured Group, and include:
- Body Catalyst Armadale
- Body Catalyst Bondi Junction
- Body Catalyst Camden
- Body Catalyst Charlestown
- Body Catalyst Chermside
- Body Catalyst Doncaster
- Body Catalyst Geelong
- Body Catalyst Green Hills
- Body Catalyst Hampton
- Body Catalyst Ivanhoe
- Body Catalyst Melbourne Central
- Body Catalyst Moonee Ponds
- Body Catalyst Mornington
- Body Catalyst Mosman
- Body Catalyst Mount Gravatt
- Body Catalyst Williamstown
In December 2023, The Commission’s Notice identified over 40 Body Catalyst locations to be impacted Australia-wide. The Group had been appointed to Alan Walker and Glenn Livingstone of WLP Restructuring. Alan Walker said: “Since being appointed as Administrators, we have focused intently on restructuring Body Catalyst to preserve jobs, maximising the recovery for creditors and ensuring the Group remains a going concern. While this process led to the unfortunate but necessary closure of clinics and related staff redundancies, the vote today creates a viable path forward for The Group.”
According to The Australian Securities & Investments Commission (ASIC), “a deed of company arrangement (DOCA) is a binding arrangement between a company and its creditors governing how the company’s affairs will be dealt with — and is agreed to after the company enters voluntary administration.” The provision of the DOCA has halted Body Catalyst’s entry into liquidation.
The news was shared by Body Catalyst Founder, Samantha Barakat Light via a LinkedIn post, saying: “It has been heartbreaking to have clinics close and even tougher for team members whose employment has been affected or uncertain during this process. That’s why it’s important to me that the DOCA allows all employee entitlements to be paid in full.” She also thanked clinic staff, suppliers and clients for their “unwavering support.”
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