The Body Shop: Jobs and stores at risk as UK chain enters administration, retailer confirms

The Body Shop has put its UK chain into administration, putting up thousands of jobs and hundreds of outlets at risk.

It was reported previously that the giant cosmetics retailer was gearing up to engage FRP Advisory to manage insolvency proceedings for its UK branch, which operates approximately 200 stores with roughly 2,000 employees.

In a statement, it said: "Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course." However, the retailer's shops will remain open as usual to ensure "customers will be able to continue to shop in store and online for their favourite products."

"The Body Shop has faced an extended period of financial challenges under past owners, coinciding with a difficult trading environment for the wider retail sector."

The Body Shop is a significant employer in Britain, with a considerable workforce based at its London headquarters. It was reported previously 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 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.