The Body Shop UK Enters Administration, Putting 2,000 Jobs at Risk
Once Pioneering Body Shop UK Faces Collapse
The British business of the Body Shop has collapsed into administration, jeopardizing the livelihoods of 2,000 employees at the once pioneering ethical cosmetics retailer.
History of the Body Shop
Founded in Brighton, southern England, in 1976 by the late environmentalist and human rights activist Anita Roddick, the Body Shop gained fame for promoting natural, ethically-sourced products and rejecting animal testing.
Rise and Fall
The retailer was a beloved fixture on the British high street in the 1980s and 1990s but has faced increasing competition from newer players, many of whom also emphasize ethical credentials.
FRP Takes Charge
FRP, the business advisory firm appointed as administrator, has assured that the Body Shop’s 199 UK stores and online service will continue to operate.
Uncertain Future
Going into administration can lead to various outcomes, including a sale of the business, closure of some or all stores, and employee redundancies.
Changing Owners
The Body Shop was acquired by L’Oreal in 2006, then sold to Brazilian cosmetics maker Natura&Co in 2017. Natura subsequently sold it to private investor Aurelius Group in November last year.
Financial Challenges
“The Body Shop has faced an extended period of financial challenges under past owners, coinciding with a difficult trading environment for the wider retail sector,” said FRP.
First Major UK Retail Casualty of 2024
It is the first significant UK retail casualty of 2024, following the shutdown of British homeware and household goods discount retailer Wilko last year.
Increased Job Losses
Last year, over 9,000 jobs were lost when Wilko shut down, although some of its 400 stores were acquired by other retailers.
