Remainder of The Body Shop Stores Saved From Closure Amid Administration Rescue Deal

Update as per September 2024

100+ Body Shop stores have been rescued from closure following an administration rescue deal by a consortium led by Mike Jatania.

Mr Jatania is known a ‘Cosmetics King’. The deal came from Aurea, his investment firm.

Reports share that this new deal will ”steer the Body Shop’s revival and reclaim its global leadership in the ethical beauty sector it pioneered”.

Sky News report more.

End of February 2024

According to reports the Body Shop may be using a CVA to exit from administration in order to continue trading.  The administrators have drawn up plans to discuss rent cuts with landlords.  Read our page on administration followed by CVA

20th February 2024

The Body Shop has announced that it will close approximately half of its stores, starting with 7 that will close immediately today; Surrey Quays (London), Oxford Street (London), Canary Wharf (London), Cheapside (London), Nuneaton (Warwickshire), Ashford Town Centre (Kent), Bristol Queens Road (Bristol).

Along with the store closures, is the cutting of 40% of roles at its London headquarters – leaving around 400 full-time employees.

The Body Shop ambassador programme is also going to close. This is the scheme were individuals sell products for a commission.

Administrators say the brand’s current portfolio is ”no longer viable” after ”years of unprofitability”. The restructuring will include a renewed focus on the companies’ products, online sales channels and wholesale.

13 February 2024

Following the reports this weekend, administrators from FRP Advisory have officially been appointed to ”accelerate the restructuring” of the UK arm of The Body Shop.

Administrators will explore all options going forward for the business.

Joint administrators, Tony Wright, Geoff Rowley, and Alastair Massey, will continue to trade the business in administration.

12 February 2024

It has been reported this weekend that cosmetics retail chain, The Body Shop, is preparing to appoint administrators from FRP Advisory to its UK arm.

This comes just six weeks after the chains new owner, Aurelius, took control.

It is understood that the retailer experienced weak trading over the festive period and early January, coupled with having insufficient working capital.

In the UK, Body Shop has 200 stores to the along with its headquarters in London –

It seems unlikely that the British cosmetics, skin-care and perfume company, set up by the late Anita Roddick, will disappear from our high streets completely.  What is likely, is that there will be a focus on reducing its costs and building up a stronger online presence.  The brand still has appeal for its ethical stance and is popular with younger shoppers.

Though the process of administration is being explored for the UK operations, the brands global franchise partners are not affected.

In fact, very recently, parts of The Body Shop’s businesses across Europe and Asia  have been sold to an unnamed family office – according to Retail Week.

Will we see The Body Shop appoint administrators? Will there be a change in owners for the fourth time?

It is interesting to see that the company has not opted for a Company Voluntary Arrangement.  This may be due to the fact that its problems do not stem from a number of poorly performing stores (which can be exited in a CVA) but to more widespread difficulties.  It is also likely that the owners have security over the assets of the brand.  If they have security then they can appoint administrators and are first in line for any payouts.

This news piece will be kept up to date in accordance to current events. You can find out more on this story from BBC News.