The Body Shop’s UK business has entered administration, potentially putting up to 2,000 jobs at risk. Despite this, the retailer’s shops will continue to operate as usual while efforts are made to save the UK firm. FRP Advisory has been appointed as the administrator and will explore all options to find a way forward for the business.
The Body Shop, known for its ethical trading practices and opposition to animal testing, has grown from a single shop in Brighton to a global brand. However, it has faced financial struggles in recent years. FRP Advisory’s goal is to create a financially stable UK business that can effectively compete in the long term.
As administrators, FRP Advisory is expected to implement cost-cutting measures, which may result in job losses. The Body Shop was acquired by European private equity firm Aurelius in November for ยฃ207m, but poor sales during the Christmas trading period ultimately led to the decision to place the company into administration.
This is not the first time The Body Shop has changed hands since its founder, Dame Anita Roddick, sold it in 2006. The company has changed owners three times since then, and there is hope that it will be restructured to better compete with brands like Lush.
Customers have expressed sadness at the potential loss of The Body Shop, praising its unique atmosphere and commitment to ethical practices. However, FRP Advisory has cited a difficult trading environment and the rise of online retailing as contributing factors to the company’s financial challenges.
While the future of The Body Shop’s UK business remains uncertain, the administrators are determined to find a solution that will secure its long-term viability.
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