The Body Shop is set to appoint administrators, putting thousands of jobs at the cosmetics chain at risk.
The retailer, which runs more than 200 shops across the UK, filed a notice to appoint administrators late yesterday (Monday 12 February).
It is understood the business could enter administration as soon as today, with insolvency experts at FRP Advisory lined up to oversee the process.
The proposed administrators are expected to seek buyers for the business and its assets, but the process will nonetheless cast a shadow over the future of its stores and workforce.
The retailer was founded in 1976 by Anita Roddick and her husband Gordon in Kensington Gardens, Brighton, as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.
It comes only weeks after new owners, European private equity firm Aurelius, took control of the business.
Aurelius, which specialises in buying and turning around troubled firms, secured a £207 million deal in November to buy the Body Shop from Brazilian cosmetics giant Natura & Co.
It only took control of operations officially on January 1.
The business employed around 10,000 people worldwide at the time of the takeover.
Aurelius agreed a deal late last month to sell the company’s operations in most of mainland Europe and in parts of Asia to an international family office in a “decisive step towards delivering a strong turnaround strategy” at The Body Shop.
FRP, administrators of The Body Shop, said the move to place the retailer in administration “provides the stability, flexibility and security to find the best means of securing the future” of the chain.
They said: “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 will continue to trade, with shops and the online site remaining open and making sales.
FRP said: “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 administrators added: “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.
It’s a great shame that some businesses have no idea how to keep up with the modern world and fail to understand how retail has changed in 50 years.
I remember that Christmas in the early 80s was all Body Shop and Filofax.
Filofax failed to become a digital platform, which would have secured their place as leader of handheld devices, as they had the original concept and the name to go with it, but they just didn’t do it.
And now The Body Shop folds, and it is amazing that it lasted this long, frankly, with no innovation.
Such a shame.
Why can’t 80s synth-pop shopping mall music fade out too? I wish it would.
Body shop goods are luxury goods none essential items. Tough economy, high living costs, people will source more economical goods. Fact. Body shop has also failed to be a @company on the lips of people” in recent times. Once upon a time an innovative, modern company. Not exhibited such traits for many years. All of the above, sadly lead to its demise. Sad loss.
Rowling’s Revenge