WASHINGTON (dpa-AFX) - Following disappointing sales over the Christmas shopping season, private equity firm Aurelius, which acquired The Body Shop for £207 million, decided to place the UK arm of The Body Shop into administration.
The brand now faces potential mass store closures and thousands of job losses. FRP Advisory has been appointed to oversee a restructuring process and manage the administration, a UK procedure where financial experts are brought in to rescue parts of a company.
The directors of The Body Shop International Limited have named Tony Wright, Geoff Rowley, and Alastair Massey of FRP as joint administrators of the company responsible for operating The Body Shop's UK business.
In a joint statement, The Body Shop and FRP confirmed that they will continue to operate The Body Shop's U.K. operations while exploring all options to move the business forward. Further updates will be provided to creditors and employees.
The administrators are expected to make significant cost reductions, especially in terms of property and rent, which could lead to job cuts. FRP highlighted that The Body Shop had been facing financial challenges for an extended period under previous ownership.
This move into administration is seen as offering the stability, flexibility, and security required to determine the best approach to secure the future of The Body Shop and revitalize this iconic British brand.
A statement from The Body Shop assured that the business will remain operational during administration, enabling customers to keep shopping in-store and online.
Since the sale by founder Dame Anita in 2006, The Body Shop has changed ownership three times. It was acquired by the L'Oreal Group in 2006, then by the Brazilian company Natura & Co. in 2017, and most recently by Aurelius Group in November 2023.
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