[Update from 2/29/2024] The UK administrators of The Body Shop have provided more details on how many stores will remain open as part of the retailer’s restructuring: 116 locations throughout the UK. The retailer will close 75 stores in a phased process over the next four to six weeks, and the closures will necessitate laying off 489 employees.
[Update from 2/20/2024] The Body Shop’s administrators have announced a restructuring plan for the retailer’s UK business. Seven of the retailer’s 198 UK stores will close immediately, and future closures will leave “more than half” the current count operating. Additionally, the Joint Administrators plan to cut headquarters staff by approximately 40%, aiming for a future headcount of more than 400 full-time employees. According to a press release, “Stabilizing and strengthening the central core will also support The Body Shop’s international strategy, with Global Head Franchise Partners and wholesale partners in Asia, Middle East and Europe a cornerstone of future success,”
Original article from 2/13/2024 begins:
The UK arm of the The Body Shop has entered administration, the British version of bankruptcy protection, according to Reuters and other media reports, but it will continue to operate online and via its 199 UK brick-and-mortar stores for the time being. Private equity firm Aurelius Group purchased the retailer from Natura &Co in November 2023 for nearly $258 million. Now, FRP Advisory has been brought in to manage the restructuring process.
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Originally founded in 1976 by Dame Anita Roddick, The Body Shop was known for its ethically sourced natural ingredients and refillable packaging. Founder Roddick also was a vocal activist for environmental causes, beginning in 1986 with her support for Greenpeace’s Save the Whales campaign. In 2006 Roddick sold the company to cosmetics giant L’Oréal, which sold it again to Natura &Co in 2017. Worldwide, the company operates approximately 3,000 stores in 70 countries.
“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,” according to a quote from FRP in the Reuters article. FRP also noted that “the Joint Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course.”
