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Latest NewsRetailJob creation and lossesInsolvencyRedundancy

The Body Shop goes into administration

by Ashleigh Webber 13 Feb 2024
by Ashleigh Webber 13 Feb 2024 Photo: Hermin Utomo / Alamy Stock Photo
Photo: Hermin Utomo / Alamy Stock Photo

The Body Shop has gone into administration in the UK, putting up to 2,000 jobs at risk.

The new owners of the ethical beauty chain, which has around 200 high street stores, have appointed insolvency firm FRP Advisory which will consider options for the firm’s future. Its shops will remain open as usual.

FRP said creating “a more nimble and financially stable UK business” would be an important step towards The Body Shop becoming a brand that is “relevant to customers and able to compete for the long term”.

Sources told Sky News that the administrator could consider closing a significant number of The Body Shop’s UK stores, which would likely result in redundancies. Its international franchises would not be affected.

Appointing administrators

Company insolvencies at 30-year high

Surge in government spending on unpaid wages and redundancy pay

The retailer, which was founded by environmental campaigner Dame Anita Roddick in the 1970s, has undergone several changes in ownership since she sold the business in 2006.

Pan-European investment firm Aurelius acquired it in November 2023, but since then has seen a trading slump.

Its businesses across most of Europe and parts of Asia have recently been sold to an unnamed family-run firm, according to Retail Week.

Last week, The Body Shop’s former owner Natura & Co wrote to Aurelius over claims that former employees had not been paid bonuses worth up to £3m. It said former employees of The Body Shop were owed their share of Natura’s long-term incentive scheme at the end of January. It is understood the bonuses were transferred to the new owner as part of its takeover.

It was recently revealed that company insolvencies in England and Wales reached their highest level in 30 years in 2023.

Chris Brook-Carter, chief executive at the Retail Trust, which represents retail workers, commented: “We’re very sorry to hear the news about The Body Shop and the impact this could have on the thousands of people who currently work there.

“This kind of uncertainty only adds to the pressure many people in retail are already facing, which is being borne out by the numbers of workers and retailers reaching out to the Retail Trust for help right now.

“In the last year alone, we’ve received more than 11,000 calls to our wellbeing helpline, given out more than £600,000 in financial aid and worked with more than 200 retailers to help improve the wellbeing of their staff.”

 

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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