The Body Shop in Crisis: Administration Looms, Jobs and Stores at Risk

The Body Shop, a well-known skincare and cosmetics retailer founded by Anita Roddick in the 1970s, has appointed administrators, leading to concerns over the business’s future. Aurelius, a European private equity investor, acquired the company shortly before Christmas. However, recent trading performance has been lackluster.

Despite the holiday season, sales were disappointing, leaving the company with insufficient working capital to sustain its operations. Sources report that administrators from FRP Advisory are taking charge of the insolvency process, potentially resulting in the closure of numerous stores and putting over 2,200 jobs at risk. With over 200 shops in its network, this could have significant implications for employees and customers alike.

The administrators said in a statement, “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.”

Additionally, The Body Shop’s international branches have already been sold to an undisclosed family office. Aurelius also closed the company’s direct sales business, The Body Shop at Home, last month.

Anita Roddick, known for her environmental activism and entrepreneurial spirit, founded The Body Shop in Brighton in 1976. For three decades, she steered the company, championing causes such as cruelty-free testing and ethically sourced ingredients. However, in 2006, Roddick sold the business to French corporation L’Oréal for a staggering £652 million. This move drew criticism from those who saw it as a departure from the company’s core values.

Since then, The Body Shop has changed ownership multiple times, ultimately falling under Aurelius’s control in November. Now the company’s future hangs in the balance. The potential impact of the administration on jobs and communities served by its stores is a cause for concern.

As The Body Shop navigates this challenging period, loyal customers and advocates of ethical consumerism are left wondering what lies ahead for this iconic brand. Sources familiar with the situation believe the brand will survive, but likely with far fewer stores.

Per the administrators, “Focusing on the UK business is the next important step in The Body Shop’s restructuring.” They added, “Taking this approach provides the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalizing this iconic British brand.”