Body Shop UK enters administration threatening jobs and shops

The UK arm of The Body Shop has entered administration, threatening more than 2,000 jobs and stores.

As first reported by Sky News, FRP Advisory has been brought in to handle a restructuring process just weeks after the new owners took control of the cosmetics retailer.

The Body Shop has roughly 200 outlets across the UK. It's understood up to 100 stores could be closed in an effort 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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A Body Shop statement said: "administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course".

The business will continue to trade in administration, it added, "ensuring customers will be able to continue to shop in store and online for their favourite products".

The administration "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", it continued.

"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."

According to latest company accounts, The Body Shop had 2,568 staff in the UK, of which 927 were in administrative roles and 1,641 were store staff in 2022.

The brand's global franchise partners are not impacted.

The British-based chain was acquired in November by private equity firm Aurelius in a deal it said was valued at £207m.

At the time of the purchase, The Body Shop employed about 10,000 people globally and operated roughly 3,000 stores in 70 countries.

Although it struggled with profitable growth for years, it remains a recognisable presence on British high streets.

It was founded in 1976 by Dame Anita Roddick and her husband Gordon, championing environmental causes and opposing animal testing.

It was owned by L'Oreal between 2006 and 2017 before being sold to Brazilian cosmetics group Natura.

(c) Sky News 2024: The Body Shop UK enters administration threatening more than 2,000 jobs and 100 shops