British beauty and cosmetics retail chain The Body Shop announces the appointment of bankruptcy administrators after years of financial difficulties.
LONDON — British beauty and cosmetics retail chain The Body Shop announced Tuesday that it has appointed receivers after years of financial difficulties.
The retailer has grown from a single store in 1976 to become one of the best-known retailers on Britain’s high streets, with hundreds of stores across the UK and abroad, and is known as an early champion of ethical practices in business. Masu.
FRP, the managers hired by The Body Shop, said it would “consider all options to find ways to move the business forward.”
“The Body Shop has faced prolonged financial difficulties under its previous owners, which is consistent with a difficult trading environment for the retail industry as a whole,” FRP said.
The announcement comes just weeks after the chain’s new owner, Aurelius, a European private equity firm that specializes in acquiring and restructuring distressed companies, took the helm of the business.
The retailer of soaps, creams and cosmetics was named by Anita Roddick as one of the first companies to promote so-called ethical consumerism, emphasizing fair trade practices and cruelty-free cosmetics and skin care products. It was founded in 1976 by her husband.
The brand became hugely popular in the 1980s when it floated on the London Stock Exchange and has stores in around 80 countries, many of which are operated through franchises.
Roddick and her husband sold The Body Shop to beauty giant L’Oréal in 2006. The brand was taken over by Brazilian cosmetics company Natura in 2017 and sold to Aurelius late last year in a deal worth £207m. ($261 million.) At the time of acquisition, the company employed approximately 7,000 people worldwide.
At the time, Aurelius expressed optimism that the company could reinvigorate the iconic British brand “despite the challenging retail market.”
The chain will continue to trade in stores and online during the administration process, but news that it has gone into administration will likely put hundreds of jobs at risk.