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The Body Shop has employed administrators, jeopardizing the employment of thousands of individuals at the cosmetics company.
The company, with over 200 stores in the UK, has enlisted the help of FRP Advisory to manage the insolvency proceedings.
FRP announced that the administrators will explore various possibilities to move the business forward, following a lengthy period of financial difficulties and in light of a challenging climate for consumers.
The company will continue to sell products in physical locations and on the internet while undergoing the administration process.
The administrators emphasized that the UK business will be the only one affected by the process, and that international franchises will not be impacted.
The UK has a total of 200 stores operated by The Body Shop.
FRP stated: “The Body Shop is committed to being a contemporary and vibrant beauty brand that is appealing to customers and capable of sustaining competition in the long run.”
“Establishing a financially secure and agile UK enterprise is a crucial move towards achieving this goal.”
The Body Shop has experienced a prolonged period of financial difficulties while under previous ownership, which also aligns with a challenging trading climate for the overall retail industry.
Anita Roddick and her husband Gordon established the retailer in 1976, making it one of the pioneers in advocating for ethical consumerism. The company’s main focus is on promoting ethically produced cosmetics and skincare items.
Just weeks after being acquired by European private equity firm Aurelius, the business is facing this development.
Aurelius, an expert in acquiring and reviving struggling companies, successfully completed a £207m agreement in November to purchase The Body Shop from Brazilian beauty conglomerate Natura &Co.
On January 1, it officially assumed control of operations.
At the time of the acquisition, the company had a global workforce of approximately 10,000 employees.
In late March, Aurelius reached an agreement to sell the majority of the company’s operations in mainland Europe and certain areas of Asia to an international family office. This was seen as a significant move towards implementing a successful turnaround strategy for The Body Shop.
In 1976, Anita Roddick established the chain, making it one of the pioneering stores in promoting ethical consumerism.
Last November, the private equity purchaser, Aurelius, announced that they would have the chance to revitalize the retailer.
“At the time, Aurelius partner Tristan Nagler expressed joy in acquiring a renowned British brand that led the way in promoting cruelty-free and natural ingredients within the health and beauty industry.”
Source: independent.co.uk
