Body Shop prepares to appoint administrators
The fresh proprietors of The Body Shop are getting ready to choose administrators to supervise projected shutdowns of shops within their UK division.
Aurelius recently bought The Body Shop for £207 million and is now looking to hire FRP Advisory to manage a bankruptcy process in the UK, where The Body Shop has approximately 200 stores.
As per the report by Sky News, it is known that the private equity company might commence the process next week.
Aurelius, who sealed the deal in January, is getting ready to take fast actions aimed at improving the Body Shop's fortunes. This could involve reducing the company's operations and giving more attention to digital sales.
An informant who knows about the agreement stated that the vendor's commerce in the United Kingdom did not meet the expectations of Aurelius.
According to the latest financial records of The Body Shop, the company suffered a loss of £60 million during the previous fiscal period. This occurred when the company was still under the ownership of the Brazilian cosmetic conglomerate, Natura & Co.
The store claimed that it had faced a tough time due to a difficult situation in the retail industry, as well as an increase in inflation and interest rates.
Dame Anita Roddick, an environmental activist who fought against animal testing for cosmetics and promoted fair trade certification for various products, established The Body Shop.
Back in 2006, Dame Anita vended her company to L'Oreal for a sum of £652 million.
In 2017, Natura &Co purchased the company from L'Oreal for £880m, a decade after the passing of Dame Anita.
The company has faced difficulties competing in the UK market due to the emergence of competitors like Lush who specialize in handmade cosmetics. Despite this challenge, the company still maintains a significant presence in various locations throughout Britain's popular shopping districts.
After the recent sale of the company, a spokesperson for The Body Shop shared with Retail Week that this move is yet another significant milestone in their efforts to enact a robust turnaround plan for the company. This plan will be backed by an optimal structure that will help to facilitate their goals.
The goal is to establish a contemporary and energetic cosmetic company that appeals to clients and has the ability to contend in the market for an extended period of time.
Both The Body Shop and Aurelius have chosen not to provide any comments on the matter.
