The Body Shop has begun the process of filing for administration with jobs at risk across the brand’s 200-plus UK stores expected in another blow to the British high street.
The beloved chain currently employs 10,000 people across 3,000 stores it operates in more than 70 countries around the world – with a further 12,000 staff working in franchises.
Set up in 1976 by the late Dame Anita Roddick, the company became famous for it’s no-nonsense ethical trading ethos and refusal to test products on animals.
Popular products which helped establish the brand’s name included bath bombs, White Musk fragrance and Hemp hand cream.
However in recent years it has seen its popularity in the UK with shoppers diminish due to the rise of rivals Lush and Holland and Barret.
After being sold to L’Oreal for £675million by Dame Anita in 2006, the company has changed hands through multiple owners, before being bought by private equity firm Aurelius just weeks ago for £207million.
After purchasing the brand, Aurelius said that ‘despite the challenging retail market there is an opportunity to re-energise the business to enable it to take advantage of positive trends in the high-growth beauty market.’
It has since emerged that the business has insufficient working capital and suffered from a poor Christmas period of trading.
It’s been reported that restructuring expert FRP Advisory will be appointed in the coming days to significantly restructure the brand.
In January, the Body Shop claimed that most of its business stemmed from mainland Europe and Asia.
It told Retail Week: ‘This further prioritises the Body Shop’s strategically important markets and global head franchise partner relationships, which it will look for opportunities to build.
‘The Body Shop will also focus on more effectively reaching customers by strengthening digital platforms, developing new sales channels, and via differentiated retail experiences.’
MailOnline has approached The Body Shop and Aurelius for comment.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
