The Body Shop: Jobs and stores at risk as new owner set to appoint administrators for UK chain

The recent acquisition of The Body Shop has prompted the new owners to make arrangements for administrators to control its British arm, potentially putting significant numbers of shops and jobs at risk. According to Sky News, the company, established by Anita Roddick and Gordon Roddick almost 50 years ago, is gearing up to engage FRP Advisory to manage the insolvency proceedings for its UK branch, which operates approximately 200 stores.

Sources told the outlet on Friday (February 9) that the administrators might consider 'closing a significant chunk' of The Body Shop's UK stores, although they cautioned against speculating on exact figures at this stage. The Body Shop is a significant employer in Britain, with a considerable workforce based at its London headquarters.

However, the administration process for its UK operations will not affect the band's global franchise partners, said the report. Recently, The Body Shop has sold its businesses in most of Europe and some parts of Asia to an undisclosed family office.

The retailer, as reported by RetailWeek, said that this move "further prioritises The Body Shop's strategically important markets and global head franchise partner relationships, which it will look for opportunities to build".

It added: "The Body Shop will also focus on more effectively reaching customers by strengthening digital platforms, developing new sales channels, and via differentiated retail experiences.

"The announced sale is another decisive step towards delivering a strong turnaround strategy for The Body Shop, supported by the right structure. The ambition is to create a modern and dynamic beauty brand, relevant to customers and able to compete for the long term."

The Body Shop was acquired in November by Aurelius, a private equity firm, in a deal it said was valued at £207m. Retail sources said the new owner came to the conclusion that the company lacked working cash and was performing less well than expected after the purchase closed at the beginning of the year.

This comes after the company decided to close its Body Shop at Home division after 30 years. The scheme, which allows consultants to sell products and earn an income from the comfort of their home, will now cease operations on February 23.

The cosmetics group previously said it is looking to shift its focus away from the UK market and towards South America.