Hundreds of jobs are expected to be lost and stores closed as The Body Shop officially entered administration.
Tony Wright, Geoff Rowley, and Alastair Massey of business advisory firm FRP have been appointed as joint administrators of The Body Shop International Limited after reports first emerged on Friday evening that the move was imminent.
FRP said that the administration process only relates to The Body Shop’s UK operations.
In a statement, FRP said: “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.
“The joint administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course.
“The Body Shop remains guided by its ambition to be a modern, dynamic beauty brand, relevant to customers and able to compete for the long term. Creating a more nimble and financially stable UK business, is an important step in achieving this.
The Body Shop is facing an uncertain future. (Photo by Carl Court/Getty Images)
“The joint administrators will continue to trade the business in administration, ensuring customers will be able to continue to shop in store and online for their favourite products.
“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.
“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.”
The Body Shop was established by the late Dame Anita Roddick in 1976 and was recently bought by private equity firm Aurelius. The retailer has more than 200 shops in the UK and is headquartered in London.
It started out as a single shop in Brighton and has become well-known for its ethical trading stance as well as being against testing beauty products on animals.
Dame Anita sold the company to French beauty giant L’Oreal for £652m in 2006 ahead of her death in the following year.
According to its website, the business employs 10,000 people as well as 12,000 through franchises. It also says operates in around 3,000 stores in over 70 countries.
Its current owner, Aurelius, acquired Greater Manchester-headquartered Footasylum from JD Sports for almost £40m in August 2022.
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The Body Shop: Why the high street icon is facing administration and what the future holds