The Body Shop appointed administrators to accelerate the restructuring of the UK business, as per the media statements.
“Today, 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.
Adding, “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.”
Creditors and employees will receive updates in the coming days, as The Body Shop’s UK branch, acquired by German private equity firm Aurelius in November, faces challenges amid a difficult economic climate during the crucial Christmas trading period.
Established in 1976 by Anita Roddick, The Body Shop, a British high street fixture, changed hands multiple times since Roddick’s 2006 sold it to L’Oreal.
With approximately 200 UK stores out of a global total exceeding 3,000, the company employs around 10,000 directly and an additional 12,000 through franchises.
Aurelius had previously sold The Body Shop’s business in most of mainland Europe and parts of Asia.
“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 Tuesday’s statement.
Brazil’s Natura Cosmeticos purchased The Body Shop from L’Oreal and sold it to Aurelius for £207 million at the end of last year, significantly less than the previous owners paid.
