The Body Shop set to appoint administrators for UK arm

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The recent acquirers of The Body Shop from Europe's private equity have plans to appoint administrators to manage its business operations in the UK. This move comes only a few weeks after the sale was completed for a total of £207 million.

In November, Aurelius acquired the cosmetic brand from Natura & Co, a Brazilian firm. Aurelius also owns Lloyds Pharmacy and Footasylum, a sportswear chain. They began running the brand at the beginning of the year.

According to a source who is knowledgeable about Aurelius's decision-making, the retailer is getting ready to hire FRP Advisory as administrators. This move could result in the closure of some of the approximately 200 outlets that the retailer operates in Britain, as well as job losses. Sky News was first to report this development.

According to an individual, people handling insolvency could look for ways to decrease the expenses of the company by obtaining discounted rent.

According to a source, the private equity company determined that the business did not have enough money to operate and was not performing as well as it should be. Therefore, the company plans to take immediate action to improve its financial situation.

According to the CEO of Rendle Intelligence and Insights, Diane Wehrle, if any shops were to close in the UK, it would be a major setback for the country's high streets.

"It's probable that moving forward, the emphasis will be more towards online as it better fits the presently diverse customer base," she stated.

It is anticipated that the UK operations administrative procedure will not impact the franchise partners of the brand globally.

Aurelius, with its various locations in Europe, focuses on purchasing and reviving neglected businesses that have been separated from larger corporations or are undergoing operational challenges.

In the previous month, the company confirmed that it had made a deal with a global family-run financial organization to dispose of its business in the majority of mainland Europe and some regions in Asia. This act was seen as a resolute measure in achieving their goal of a significant comeback plan.

Aurelius had announced its plans to enhance the operations of the company, which was in a difficult situation due to the previous ownership and facing competition from other firms that adopted similar ethical practices. The confirmation of their plan came weeks later. Natura acquired the business from L'Oréal for €1bn in 2017.

The Body Shop was established in 1976, by Anita Roddick and Gordon, her husband, who has now passed away. The company was one of the pioneers in promoting ethical consumerism, which believes that businesses can have a positive impact.

According to Tristan Nagler, a partner at Aurelius, The Body Shop is a well-known company that many of us are familiar with from our childhoods. In November, Nagler expressed the belief that there is a chance to allow the company to stand alone and rejuvenate it to its previous successes.

Aurelius, The Body Shop, and FRP were not willing to provide any comments.