The UK arm of skincare and cosmetics retailer The Body Shop is poised to enter administration, a development that could lead to store closures and job losses across the country.
With the move to appoint administrators, the retailer’s UK operation is expected to undergo a significant restructuring process.
The Body Shop, renowned for its cruelty-free and ethical beauty products, is struggling with insufficient working capital to maintain its current operations.
The retailer is expected to appoint business advisory company FRP Advisory as its administrator in mid-February 2024 to handle the insolvency process.
The company reported weaker-than-anticipated trading during the 2023 holiday period and into early January.
In January 2024 the retailer also announced plans to divest its operations in most of mainland Europe and parts of Asia.
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The company, founded in 1976 by Dame Anita Roddick, is an omnichannel retailer with physical stores, e-commerce sites, international franchises and wholesale customers.
Roddick launched The Body Shop in Brighton and maintained ownership for thirty years before selling to L’Oréal in 2006 for £652m.
L’Oréal offloaded the business to Natura, a Brazilian beauty company, in 2017 for £880m.
The current owner Aurelius, a pan-European private equity firm, acquired the retailer in late 2023 in a £207m deal.
Headquartered in London, The Body Shop employs 7,000 staff. It has operations in 89 markets and 900 company-owned stores in 20 countries.