Debt in the beauty industry is on the rise

Debt in the beauty industry is on the rise

At the end of September this year, the debt of entrepreneurs operating in the beauty industry exceeded PLN 100 million.

This is according to data from the BIG Info Monitor register and the Credit Information Bureau (BIK). After the first lockdown, the sector’s debt increased by over 20%. This year the companies are not getting into debt so quickly, but their liabilities are still growing. Many owners of hairdressing and beauty salons have been so hard hit by the restrictions that they have closed their businesses. Many of them tried to sell them. On the Internet, there were offers to sell entire establishments, premises or equipment. This was especially visible in the first two quarters of this year. Experts point out that in this industry the number of restructurings and bankruptcies may increase. The situation of the branch will worsen, among others, as a result of the increase of the costs of running a business caused by high inflation. There are solutions that would help the industry get back on track. The idea, for example, was to lower the VAT rate on cosmetic services to 8%.

Source: https://businessinsider.com.pl/biznes/branza-beauty-na-ostrym-zakrecie-fryzjerzy-i-kosmetyczki-z-coraz-wiekszymi-dlugami/0klnbtp

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