The Body Shop goes into administration putting 2,000 jobs at risk

by The Technical Blogs

The Body Shop has hired administrators, putting thousands of jobs at the cosmetics chain at risk.

The retailer, which runs more than 200 shops across the UK, has appointed insolvency experts from FRP Advisory to oversee the process.

FRP said the administrators will “consider all options to find a way forward for the business” after years of financial struggles and amid a challenging backdrop for shoppers.

The chain will continue to trade through stores and online during the administration process.

The retailer was founded in 1976 by Anita Roddick and her husband Gordon as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.

(Getty Images)

It comes only weeks after new owners, European private equity firm Aurelius, took control of the business.

In November last year The Body Shop was sold to the German owner of Footasylum in a deal worth up to £207 million.

The deal sees Brazil’s Natura & Co recoup just a fraction of the one billion euros (£872 million at today’s exchange rate) that it paid for the cosmetics firm six years ago.

It said the £207 million includes £90 million that Natura can be paid within five years if certain conditions are met.

The private equity buyer, Aurelius, said that it would have an opportunity to “re-energise” the retailer.

“We are delighted to be undertaking this acquisition of an iconic British brand, which pioneered the cruelty-free and natural ingredient movement in the health and beauty market,” said Aurelius partner Tristan Nagler.

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