The UK arm of the Body Shop has gone into administration, putting 2,000 jobs at risk at the one-time pioneering ethical cosmetics retailer.
The development came less than three months after a private equity company took over Body Shop.
It was one of the most popular on the British high street in the 1980s and 90s, but it struggled amid flagging sales and increased competition from newcomers in recent years, including from those also touting ethical credentials.
Notably, the UK operation’s parent company had already sold its business across most of Europe and in parts of Asia.
According to official data, the Body Shop has about 200 outlets across the UK, and it’s understood up to 100 of them could be closed to bring the number of shops in line with competitors, such as Lush, which trades from 104 premises in the UK and Ireland.
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FRP Administrator Set to Revive Body Shop
FRP, which was appointed as an administrator, expressed its commitment to exploring all avenues to salvage the business.
“Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course,” the statement read.
Despite the turmoil, FRP reassured customers that operations would continue both in-store and online throughout the administration process, ensuring continued access to their beloved products.
Furthermore, the administrators stated that it will also provide stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalizing the iconic British brand.
“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,” said FRP.
FRP are also expected to try to substantially cut costs, including on property and rents, which could lead to job cuts.
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About the Company
Founded in Brighton, southern England, in 1976 by late environmentalist and human rights activist Anita Roddick, the Body Shop was famous for promoting natural, ethically sourced products and rejecting animal testing.
The retailer was one of the most popular on the British high street in the 1980s and 1990s.
It was owned by L’Oreal between 2006 and 2017 before being sold to Brazilian cosmetics group Natura.
But after struggling with profitability, Natura in turn sold it on in November 2023, to a private investor, Aurelius Group in a deal valued at 207 million pounds.
It is the first major UK retail casualty of 2024.
