New Body Shop owner to call in administrators for UK chain

After recently acquiring The Body Shop, the latest owners are making arrangements to appoint administrators for the company's British branch. This action may pose a threat to a considerable amount of stores and employment opportunities.

We've discovered that the corporation established by Anita Roddick and her spouse Gordon almost fifty years ago is getting ready to hire FRP Advisory to manage a bankruptcy procedure for its UK business, which operates from roughly 200 shops.

According to sources in the city, it is highly possible that the administrators will eventually contemplate shutting down a large portion of The Body Shop's UK stores. However, they made it clear that it is too early to predict exact figures.

The Body Shop gives jobs to many individuals in Britain, which includes their main office located in London.

One source claims that the brand's international franchise partners will not be affected by the management of its UK operations.

The Body Shop has sold its businesses in various parts of Asia and Europe to a family office whose name has not been disclosed. This occurred in the past few days.

According to RetailWeek, the vendor stated that the world-wide deal emphasizes the significance of The Body Shop's important markets and franchise relationships. They intend to explore prospects to develop these areas even more.

The Body Shop plans to improve its communication with customers by enhancing its digital avenues, creating fresh ways to approach sales, and providing unique shopping experiences.

The recently announced sale is yet another important measure to implement a successful plan for turning around The Body Shop, which is also being reinforced with the proper framework.

Our goal is to establish a fresh and vibrant beauty label that resonates with our clients and can endure in the ever-changing market.

Aurelius, which is a private equity company, purchased The Body Shop in November for a sum that was estimated to be worth £207m.

According to reports from retail insiders, the recently-acquired company was found to have inadequate funds and was performing poorly compared to initial expectations by its new owner once the transaction had been completed earlier this year.

The business has made the decision to shut down its Body Shop at Home section, which was facing monetary difficulties. A recent article revealed that its past proprietor, Natura, was the source of this news.

Going through the insolvency process in the UK may pave the way for a leaner and more financially stable company to surface, following a series of ownership changes and prior difficulties.

It was reported that Aurelius successfully beat out other contenders such as Alteri Investors, Epiris (a private equity firm), and Elliott Advisors (who own Waterstones bookstore) to acquire The Body Shop.

When The Body Shop was bought, it had around 10,000 workers and approximately 3,000 shops located in 70 different countries.

Despite experiencing difficulty in achieving profitable expansion over several years, this business still maintains significant visibility on the streets of Britain.

The Roddicks were influential advocates for protecting the environment, which gave them an advantage over their competitors in the retail industry throughout the 1980s and 1990s.

When it was first established, it was uncommon for this organization to be against testing cosmetics on animals.

In the past few years, the uniqueness of this business has become less noticeable due to the arrival of rival companies that prioritize sustainability and better appeal to youthful customers.

Anita passed away in 2007.

It was reported that Natura procured The Body Shop for an amount exceeding $1 billion in 2017.

Before Natura acquired it, the renowned cosmetic company belonged to L'Oreal.

Aurelius and The Body Shop chose not to provide a statement.