The Body Shop collapses into administration
The Body Shop has collapsed into administration in the UK, putting thousands of jobs at risk as it looks to restructure the business.
The British brand has appointed Tony Wright, Geoff Rowley, and Alastair Massey of FRP as joint administrators of the business, which operates more than 200 shops across the UK.
FRP said the administrators will "consider all options to find a way forward for the business" after years of financial struggles and amid a challenging backdrop for shoppers.
"Taking this approach 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. 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," reads a statement from The Body Shop.
"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. Creating a more nimble and financially stable UK business, is an important step in achieving this."
The high street chain will continue to trade through stores and online during the administration process.
The Body Shop was founded in 1976 by Anita Roddick as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.
The news 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.
"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 statement continued.
Read TheIndustry.beauty's The Body Shop: What went wrong and can it be saved?
