April 13, 2024

The Body Shop UK enters administration with more than 2,000 jobs and 100 stores at risk Business News

Officials are considering “all options” for the UK business and will inform staff of their fate “in due course” as trading is set to continue during the process.

by Sarah Taffey Maguire, business reporter @taaffems

Tuesday, February 13, 2024 at 1:56 pm, United Kingdom

The Body Shop's UK branch has entered administration, threatening stores and more than 2,000 jobs.

As the first Quoted from Sky Newsconsulting firm FRP was brought in to handle the restructuring process just weeks after the new owners took control of the cosmetics retailer.

The Body Shop has nearly 200 outlets across the UK, and it is understood that up to 100 of these could be closed to bring the number of stores in line with rivals, such as Lush, which trades from 104 headquarters in the UK and Ireland.

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The Body Shop statement said: “Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course.”

She added that the company would continue to trade in administration, “to ensure customers are able to continue to shop in-store and online for their favorite products.”

She added that the management “provides stability, flexibility and security to find the best ways to secure the future of The Body Shop and revitalize this famous British brand.”

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She added: “The Body Shop faced a long period of financial challenges under the previous owners, coinciding with a difficult trading environment for the wider retail sector.”

According to the company's latest accounts, The Body Shop had 2,568 staff in the UK, with 927 in management roles and 1,641 in-store staff in 2022.

The brand's global franchise partners are not affected.

The British-based chain was acquired in November by a private equity firm Aurelius In a deal she said was worth 207 million pounds sterling.

At the time of the purchase, The Body Shop had about 10,000 people globally and operated nearly 3,000 stores in 70 countries.

Although it has suffered from profitable growth for years, it still has a distinct presence on Britain's high streets.

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It was founded in 1976 by Dame Anita Ruddick and her husband, Gordon, to advocate environmental issues and oppose animal testing.

It was owned by L'Oreal between 2006 and 2017 before being sold to Brazilian cosmetics group Natura.