The UK division of The Body Shop, the esteemed cosmetics brand with nearly 50 years of history in ethical hair and skincare products, has filed for bankruptcy, administrators announced on Tuesday, placing thousands of jobs at risk.
The retailer has enlisted experts from FRP Advisory to manage administration – a UK procedure involving financial experts brought in to save aspects of a company.
“The directors of The Body Shop International Limited have appointed Tony Wright, Geoff Rowley, and Alastair Massey of business advisory firm FRP as joint administrators of the company, which operates The Body Shop’s UK business,” said an FRP statement.
“Taking this approach provides the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalising this iconic British brand.”
Administrators will provide updates to creditors and employees as appropriate.
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In November, the German private equity firm Aurelius acquired The Body Shop. However, the retailer encountered difficulties during the key Christmas trading period amidst a challenging economic climate.
Established in 1976 by Anita Roddick, The Body Shop has evolved into a cornerstone of the British high street. However, since Roddick’s sale to the French cosmetics giant L’Oreal in 2006, it has changed hands multiple times.
The Body Shop has about 200 shops in the UK, or around seven percent of its worldwide total of some 3,000 stores in more than 70 countries.
The company has a direct workforce of approximately 10,000 employees, with an additional 12,000 individuals employed through franchise arrangements.
Since taking over, Aurelius had already sold The Body Shop business in most of mainland Europe and parts of Asia to an unnamed buyer.
“The Body Shop has faced an extended period of financial challenges under past owners, coinciding with a difficult trading environment for the wider retail sector,” administrators added in a statement.
“Having taken swift action in the last month, including closing down The Body Shop At Home and selling its business across most of Europe and in parts of Asia, focusing on the UK business is the next important step in The Body Shop’s restructuring.”
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Roddick, who passed away in 2007 due to a brain hemorrhage, had swiftly expanded the business from modest beginnings with a steadfast commitment to providing products that were not tested on animals.
She also aimed to make her business environmentally friendly, promoting a refill scheme where customers could return empty containers for refilling at the original shop in Brighton, on England’s southern coast.
Brazil’s Natura Cosmeticos, having previously acquired The Body Shop from L’Oreal, sold it at the end of last year to Aurelius for £207 million, a price considerably lower than what the former owners had paid.
