The Body Shop’s UK business has entered administration, potentially putting the jobs of up to 2,000 staff at risk. The stores will remain open while administrators try to save the British firm. FRP, the designated restructuring firm, plans to explore all options to find a way forward for the business.
The Body Shop was founded in 1976 by lady Anita Roddick from a shop in Brighton. It has since expanded into a global brand, focusing on ethical trade and opposing the testing of cosmetic products on animals. FRP aims to create a more financially stable business in the UK to make it a modern beauty brand relevant to customers and able to compete in the long term.
Administrators are expected to cut costs, including property and rents, which may lead to job cuts. Despite the risk, The Body Shop name is unlikely to disappear from Britain’s high streets after almost 50 years. The British company has over 200 stores, several franchises and is headquartered in London.
Aurelius, the private company which bought the brand for £207m in November, placed it into administration after poor sales over the Christmas trading period. There are hopes that with restructuring, the brand will be better positioned to compete with brands such as Lush popular with younger shoppers.
The Body Shop has changed hands three times since it was sold by founder Dame Anita in 2006, shortly before her death in 2007.