Iconic Body Shop UK enters administration, putting 2,000 jobs at risk
A man talks on the phone with The Body Shop in the background, Sao Paulo, Brazil
The once pioneering British business of the Body Shop has collapsed into administration, placing approximately 2,000 jobs in jeopardy at the renowned ethical cosmetics retailer, Reuters reported.
Founded in 1976 in Brighton by the late environmentalist and human rights advocate Anita Roddick, the Body Shop gained prominence for its advocacy of natural, ethically sourced products and staunch opposition to animal testing.
Despite its historic success, the retailer has faced mounting competition from newer market entrants boasting similar ethical credentials.
FRP, the appointed business advisory firm overseeing the administration process, has confirmed that the Body Shop's 199 stores across the UK, along with its online service, will continue to operate as usual.
The joint administrators are actively exploring various options to chart a path forward for the business, with updates expected to be provided to creditors and employees in due course.
Going into administration provides a form of creditor protection and could potentially lead to the sale of the business, store closures, or workforce reductions.
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Acquired by L'Oreal in 2006, the retailer changed hands again in 2017 when it was sold to Brazilian cosmetics firm Natura&Co for 1 billion euros.
However, grappling with financial challenges, Natura divested the brand in November last year to private investor Aurelius Group in a deal valued at 207 million pounds.
FRP cited an extended period of financial difficulties under previous owners, compounded by a challenging retail landscape, as contributing factors to the current situation.
The collapse of the Body Shop UK marks the first major retail casualty in the country for the year 2024.
Last year saw the closure of British homeware and household goods discount retailer Wilko, resulting in over 9,000 job losses.
Despite the closures, some of Wilko's 400 stores were acquired by other retailers, signalling a shifting landscape in the UK retail sector.
(With inputs from Reuters)