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    Home»Industry news»SK:N Clinics Group Dramatic Fall From Grace to Bankruptcy
    Industry news

    SK:N Clinics Group Dramatic Fall From Grace to Bankruptcy

    Comine du ToitBy Comine du ToitUpdated:17 September 20246 Mins Read1,135 Views
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    As this is an ongoing story, click here for the most recent updates on the SK:N Group developments.

    As of July 17, 2024, the SK:N Group has abruptly closed five of its companies, namely Lasercare Clinics (Harrogate) Limited, LCHMG Limited, ABC Lasers Ltd, Cosmeceuticals Limited, and Cellite Clinic Limited, prompting immediate liquidation. As a result, all medical services from these clinics have been suspended indefinitely.

    This development leaves thousands of customers, who prepaid for treatments including lip fillers, wart removal, tattoo removal, thread lifts, and breast augmentation, to name a few, at risk of losing their money.

    The critical question now is: what caused this sudden crisis and what are the implications for affected clients?

    Let’s talk about it.

    Who Is Sk:n?

    The once award-winning SK:N Group, which also owns the Harley Medical Group, is a network of skin clinics in the UK, specialising in dermatology, cosmetic treatments, and aesthetic procedures. They offer a range of services, including treatments for acne, skin ageing, and various skin conditions.

    Established in 1990 and operating over 70 clinics across the UK, including locations in Manchester, Liverpool, Glasgow, and 17 in London, this prominent British brand is among the largest plastic surgery networks in the country, and has now left more than 450 employees jobless, and thousands of patients out of pocket.

    Statement realesed by the SK:N Group on their official website

    What Took Place?

    The court has appointed the Official Receiver, Joseph Sullivan, as liquidator for the following companies: Lasercare Clinics (Harrogate) Ltd., LCHMG Limited, ABC Lasers Ltd. , Cosmeceuticals Ltd., and Cellite Clinic Ltd. These companies operated under various brands including SK:N, HMG, Skinbrands, The Skin Experts, ABC Medical, and ABC Lasers. 

    Now, numerous customers have reported that their appointments were cancelled with little notice and that refunds have not been issued. 

    One customer, who requested anonymity, indicated that their upcoming appointment was abruptly cancelled on Tuesday (16 July 2024), a day before the liquidation took place. The customer had pre-paid approximately £700 for a series of appointments and had not yet completed the full course of treatment.

    In Birmingham city centre, a notice suddenly appeared in the window of its clinic and read: ‘We are very sorry to inform you that SK:N and The Harley Medical Group ceased trading as of 17 July. As a result, we will no longer be providing services from this site with immediate effect.”

    Birmingham clinic with closed doors

    With a plethora of other distressing stories from across the nation coming to light, what we all want to know is: What led to this catastrophe that has resulted in the loss of patient funds and workers’ jobs?

    The Root Causes Of The Crisis

    Although the aesthetic market is expanding rapidly, the industry has faced significant challenges over the past five years, particularly due to operational shutdowns during Covid lockdowns, which may have contributed to SK:N’s decline. Not to mention, rising costs and slower consumer spending, exacerbated by high inflation, also appear to have been catalysts for the current situation.

    Many were reportedly unaware of any financial troubles within the company, especially as it continued to open new clinics across the nation. The latest Companies House accounts for Lasercare Clinics Harrogate Limited (trading as SK:N) reveal that the business had £35 million in debt due for repayment by 2026. Furthermore, financial documents for the year ending 31 August 2022 (the most recent available) show a £7.2 million loss before tax in 2021 and a £4.5 million loss in 2022.

    This raises a crucial question: Did they possibly overextend themselves by opening clinics while clearly struggling financially? Trispan, the private equity firm that acquired SK:N in 2019, has not yet commented. 

    Staff Termination

    Rakhee, who had worked for the group for nearly a decade, says, “We had 15 minutes to clear out our clinics and go home. All our clients were trying to get their money back. Some people were due to have their stitches removed.”

    She also mentioned that she and her colleagues were terminated after a 10-minute video call, with no remorse, no empathy, no redundancy pay, and not even a final pay slip.

    Rakhee, former SK:N Group employee

    Similar to Rakhee, Lucie, who had worked at a SK:N clinic in Guildford, stated she was told that she will not be paid for the month.

    What Is Next For Your Health And Your Finances?

    According to a BBC article, Jane, 33, from Essex, who chose to remain anonymous, expressed that she is “so stressed” after having paid £10,870 earlier this month for abdominal cosmetic surgery and liposuction. She also states: “They took the full amount on 11 July. It was only one week ago. Surely they would have known?”

    Like many others, when she called her clinic, she only received an automated message and is uncertain whether she will get her money back. 

    So, what does this mean for you and your finances? According to GOV.UK, if your operation has been cancelled, you should reach out to the medical practitioner who referred you. For any urgent care needs, contact NHS 111 or 999 in the event of an emergency.

    Regarding your financial situation, if you made the payment using a debit or credit card, your purchase may be protected. Please reach out to your bank or card provider for further assistance. If you financed the treatment through a credit agreement, please contact your finance company directly.

    Reactions From The Public

    Both people who have been affected and those who have been unaffected by recent developments are absolutely devastated by what has transpired. Public forums like Reddit are offering advice and directing individuals to resources such as the Citizens Advice website and the Consumer Advice section on GOV.UK, whereas some aesthetic clinics tragically seem to be trying to profit while masking their motives with social media sincerity.

    In Closing

    The sudden closure of the SK:N Group and its affiliated companies marks a significant disruption in the aesthetic and medical community. The abrupt nature of these closures highlights the vulnerability of even well-established businesses to financial instability and market pressures.

    As the situation unfolds, it is essential to stay informed and seek guidance from relevant financial and medical professionals.

    As this story continues to evolve, click here for the most recent news on the SK:N Group.

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    Comine du Toit

    Comine is an avid wordsmith with a deep appreciation for all things creative, quirky, and beauty-related. She firmly believes that words have power and always strives to use her superpower to the best of her abilities.

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