The Body Shop has begun the administrative application process, saying jobs are at risk across the brand’s more than 200 UK stores in what is expected to be a further blow to the country’s high street.
The beloved chain currently employs 10,000 people in 3,000 stores in more than 70 countries around the world, with an additional 12,000 staff working in franchises.
Founded in 1976 by the late Mrs. Anita Roddick, the company became known for its honest ethical trading ethos and rejection of animal testing.
Popular products that helped establish the brand’s name included bath bombs, white musk scents, and hemp hand cream.
But in recent years, the rise of rivals Lush and Holland & Barrett has made it less popular with shoppers in the UK.
After being sold by Dame Anita to L’Oréal in 2006 for £675m, the company has passed through several owners and just weeks ago was acquired by private equity firm Aurelius for £207m.
Following the acquisition of the brand, Aurelius said: “Despite the challenging retail market, there is an opportunity to reinvigorate the business to take advantage of positive trends in the high-growth beauty market.”
It was later revealed that the company had insufficient working capital and was suffering from a slump in trading during the Christmas period.
It is reported that restructuring experts FRP Advisory will be appointed in the coming days to significantly rebuild the brand.
The Body Shop claimed in January that most of its business comes from mainland Europe and Asia.
“This will further prioritize and explore opportunities to build on The Body Shop’s strategically important markets and relationships with our global head franchise partners,” the company told Retail Week.
“The Body Shop is also focused on reaching customers more effectively through enhanced digital platforms, development of new sales channels and differentiated retail experiences.”
MailOnline has contacted The Body Shop and Aurelius for comment.