London (AFP) – The UK arm of The Body Shop, a nearly 50-year-old cosmetics company known for its ethical hair and skin products, is going into administration, putting thousands of jobs at risk, administrators announced on Tuesday.
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The retailer has appointed FRP Advisory experts to oversee management. This is a British process where financial experts are drafted in to rescue parts of a company.
“Today, the directors of The Body Shop International Limited have appointed Tony Wright, Geoff Rowley and Alastair Massey of FRP as joint administrators of The Body Shop’s UK operations. appointed,” the FRP statement said.
“Taking this approach gives us the stability, flexibility and security to secure the future of The Body Shop and find the best means to reinvigorate this iconic British brand. ”
The administrator will keep creditors and employees updated from time to time.
“Eco-beauty icon”
German private equity firm Aurelius had just acquired The Body Shop in November, but the retailer has fallen on hard times due to tough economic conditions during the crucial Christmas trading period.
Susannah Streeter, head of money markets at brokerage firm Hargreaves Lansdown, said: 'The Body Shop has been unable to overcome declining sales, with weak sales during the important festive period and environmental concerns. “We have promoted the symbol of the government to power,” he lamented.
The Body Shop was founded by Anita Roddick in 1976 and has become a staple of the British high street, but has gone through various owners since Anita Roddick sold it to French cosmetics giant L'Oréal in 2006. It has been managed by
The Body Shop has approximately 200 stores in the UK, or approximately 7% of its approximately 3,000 stores worldwide in over 70 countries.
The company employs approximately 10,000 staff directly and a further 12,000 through franchises.
Roddick, who died of a brain hemorrhage in 2007, quickly expanded his business from humble beginnings with a determination to offer products that were not tested on animals.
She also aimed to make her business more environmentally friendly, including encouraging customers to return and refill empty containers at the original store in Brighton, on England's south coast.
“A rival steals the march.”
Hargreaves Lansdown's Streeter said: “In the 1980s, The Body Shop became a popular brand for young shoppers with a deep environmental conscience, a focus on social justice and conservation, and who enjoyed freshly scented bubbles and beauty products. It was a place to visit,” he added.
“But now stores like Lush are targeting tweens and teens, lured by their scented bath bombs and innovative product ingredients, and raking in bigger pocket money.
“Competitors stole March, which was The Body Shop's unique eco-certification.”
Brazil's Natura Cosmeticos, which bought The Body Shop from L'Oréal, paid £207 million ($261 million at current exchange rates), far less than the previous owner paid late last year. Sold to Aurelius.
Since taking over, Aurelius has already sold The Body Shop's operations in most of mainland Europe and parts of Asia to an unnamed buyer.
Administrators said in a statement on Tuesday: “The Body Shop has faced long-term financial difficulties under its previous owners, which is consistent with a difficult trading environment for the retail industry as a whole.” he added.
“Last month we took quick action to close The Body Shop at Home and sell our businesses across much of Europe and parts of Asia, but our focus on the UK business will continue to grow as The Body Shop This is an important next step in the restructuring of the
© 2024 AFP
