Saturday, February 24, 2024

The Body Shop calls in administrators for UK business

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The Body Shop is set to appoint administrators for its UK operation in a move which could result in job losses and shop closures.


The cosmetics retailer’s owner Aurelius is allegedly lining up restructuring expert FRP Advisory to manage an insolvency process, according to Sky News


The administrators are likely to consider shutting some of the chain’s 200-plus UK stores in a bid to reduce costs, sources told the publication.


Private equity firm Aurelius bought The Body Shop in November 2023 for £207m – a fifth of the price previous owners Natura & Co paid for it in 2017. 


However, the beauty retailer’s trading over the festive period and early January is rumoured to have been weak.


The company is also said to have insufficient working capital.


The administration process for the British arm of The Body Shop’s business is alleged not to affect its global franchise partners. 


Aurelius has already sold parts of the beauty retailer’s Europe and Asia business to an unknown family office last week.


The firm signed an agreement with an international family office as it moves towards “delivering a strong turnaround strategy”. 


This offloading is part of a wider strategic plan to bolster The Body Shop’s operations in other key markets.


Former owner Natura & Co has also contacted Aurelius over alleged unpaid bonuses to former employees.


More than 20 former The Body Shop employees are reportedly owed between up to £3m in bonuses following the sale of the embattled beauty brand.  


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