The Body Shop administration news — Store founded by late Anita Roddick at risk of closing stores and jobs on the line
HUNDREDS of jobs have been put at risk as the UK arm of Body Shop has entered administration.
FRP Advisory has been brought in to restructure the beauty and cosmetics company, which has around 200 stores across the UK.
A Body Shop statement said: "Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course".
The brand will continue to trade during administration, but hopes it will "provide the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalising this iconic British brand."
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Environmentally friendly store
The Body Shop is known for creating cruelty-free, environmentally friendly cosmetic products.
It was founded in 1976 by Dame Anita Roddick and always pushed against animal testing.
L’Oreal owned The Body Shop between 2006 and 2017 before being sold to Brazilian cosmetics group Natura.
When did Anita Roddick die?
In September 2007, Dame Anita Roddick passed away from a brain haemorrhage after being admitted to St Richard's Hospital, Chichester, West Sussex.
Her husband Gordon, and her two daughters, Sam and Justine, were at her side.
Prior to her passing, Anita had revealed that she was diagnosed with Hepatitis C in 2004.
The late founder's illness was first discovered during a routine blood test for a life insurance policy.
Anita Roddick's net worth
Body Shop founder, Anita, reportedly had a net worth before her death of around £51 million.
It was revealed that she had given away all of her wealth to charity and the rest to tax.
The gross value of Anita's estate when she died was £665,747.
Who was The Body Shop founder?
Dame Anita Roddick, born October 23, 1942, was a British businesswoman, human rights activist and environmental campaigner.
Throughout her lifetime, Anita was best known as the founder of the Body Shop - a cosmetics company producing and retailing natural beauty products.
Anita opened her first Body Shop in Brighton back in 1976.
The brand first started as a small shop providing quality skincare products in refilled bottles, with the belief that the business could be a force for good.
Following this, the Body Shop went on to become a global retail business serving over 30 million customers worldwide.
Fans of The Body Shop react to the news
The Body Shop fans have been left gutted after hearing the news that the beauty shop has entered administration.
One user wrote: "I'm confident that The Body Shop will come out of this stronger than ever.
"Their commitment to ethical and sustainable products is something to be admired. I look forward to seeing what the future holds for them."
A second wrote: "I need someone to buy body shop omfg!!! Where else am I going to get my make up remover and lip and cheek tint?"
Body Shop at Home Service axed
The store recently axed the Body Shop at Home service in the UK and Australia after 30 years.
The Avon-style business lets individual consultants sell products to customers from the comfort of their home.
Thousands of consultants currently use the Body Shop at Home service, but it will close for good on February 23.
What can the administrator do?
According to , the administrator could:
- negotiate a Company Voluntary Arrangement (CVA) so your company can keep trading
- sell your business as a ‘going concern’ to another company - meaning your business can carry on, e.g. by keeping its clients, workforce or orders
- sell your assets as part of a creditors’ voluntary liquidation, pay your creditors from any money raised and close your company
- close your company if there’s nothing to sell
- administrator has control over your business during administration, so they can cancel or renegotiate any contracts you have or make employees redundant.
How does administration work?
The administrator will write to your creditors and Companies House to say they’ve been appointed.
They will try to stop the company being liquidated but if they can’t, the administrator will pay as much of the company’s debts as possible from the assets.
The administrator has eight weeks to write a statement explaining what they plan to do.
This must be sent to creditors, employees and Companies House and invites them to approve or amend the plans at a meeting.
The Body Shop's recent deal
The Body Shop was bought by private equity firm Aurelius from former owner Natura and Co in November in a deal worth £207million.
The cosmetics group said it was looking to shift its focus away from the UK market and towards South America.
New owners Aurelius, a private equity group which also owns Lloyds Pharmacy and Footasylum, also confirmed that it sold off most of The Body Shop business in mainland Europe and parts of Asia last month.
Will shops continue to trade?
The Body Shop will continue to trade, with shops and the online site remaining open and making sales.
Administrators FRP said said the move to place the retailer in administration “provides the stability, flexibility and security to find the best means of securing the future” of the chain.
Not the first high-street collapse
A number of retailers have crashed into administration last year, including Cath Kidston, Paperchase and major discounter Wilko.
But Wilko has since returned to the high street under The Range's ownership, and Wilko branded items are being stocked in The Range stores.
Wilko's fall was the biggest British retail collapse since McColl's plunged into administration in May last year.
But the cornershop chain was saved from closure after Morrisons swooped in to protect 16,000 jobs.
Paperchase collapsed into administration at the end of January last year year and all 106 stores closed for good.
The Body Shop enters administration just months after sale
The Body Shop was acquired in November 2023 by private equity firm Aurelius.
The deal was reportedly valued at £207m.
At the time around 10,000 people worked for The Body Shop globally.
Inside The Body Shop
The Body Shop is known for creating cruelty-free, environmentally friendly cosmetic products.
It was founded in 1976 by Dame Anita Roddick and always pushed against animal testing.
L'Oreal owned The Body Shop between 2006 and 2017 before being sold to Brazilian cosmetics group Natura.
The Body Shop enters administration
Beauty and cosmetics brand The Body Shop has entered administration.
FRP Advisory has been brought in to handle the restructuring process.
A Body Shop statement said: "administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course".