The Body Shop’s UK operations have entered administration, a development that threatens widespread store closures and potential job losses for thousands in one of the UK’s most prominent beauty retailers.
The ethical cosmetics chain’s UK division, which includes about 200 stores, was placed into administration this Tuesday by its current owners, the private equity firm Aurelius. This move comes just weeks after Aurelius acquired the chain in a £207 million transaction from its former owners, Nature & Co.
FRP Advisory, the appointed administrators, are now exploring all possible avenues to salvage the UK operations and will provide updates to creditors and employees as the situation progresses.
While the administration process is underway, The Body Shop’s stores will continue to operate, and its online sales will persist. This administrative process is not expected to impact The Body Shop’s international franchise partners.
The retailer commented on the situation, stating: “The Body Shop has been grappling with financial difficulties for an extended period under previous ownership, alongside a challenging retail environment overall. Recent decisive actions, including the closure of The Body Shop At Home and divesting the business in most European countries and parts of Asia, were critical. Now, focusing on restructuring the UK business is a key step in The Body Shop’s overall recovery plan.”
This development follows reports from last week suggesting that The Body Shop’s performance was weaker than anticipated, due in part to the difficult conditions on the high street.
According to a Sky News report on Saturday, Aurelius has offloaded a significant portion of The Body Shop’s operations in Europe and Asia to an undisclosed buyer.
Established in Brighton in 1976 by Dame Anita Roddick, a renowned environmental activist, The Body Shop is recognized for pioneering the introduction of ethical, or “cruelty-free,” beauty products to the mainstream market.
Today, The Body Shop has a presence in around 70 countries, employing approximately 10,000 people across its global network of 3,000 stores.
