Body Shop insolvency threatens stores

LANDLORDS are bracing for a wave of closures after The Body Shop collapsed into administration, putting more than 2,000 jobs at risk.

The UK arm of the ethical cosmetics chain, which covers about 200 stores, was put into administration yesterday by its owners, the private equity house Aurelius, a matter of weeks after it was acquired in a £207m deal from previous owners Natura & Co.

Administrators at FRP Advisory will now consider all options to find a way forward for the UK business and will update creditors and employees in due course. It raises the prospect of a hit to the chain’s landlords, which include numerous independent landlords, local authorities and large-scale property groups. Land Securities Group, which owns the Westgate Shopping Centre in Oxford, is one of the Body Shop’s biggest landlords. Others include Network Rail and Nuveen Real Estate, one of the largest investment managers in the world. The Body Shop has stores in London’s Liverpool Street and London Bridge stations, which are run by Network Rail as well as stores in shopping centres run by Landsec including the White Rose centre in Leeds and Bluewater in Kent.

According to The Body Shop’s latest financial accounts, its lease liabilities stood at £57m at the end of 2022.

The retailer’s UK stores will remain open while administrators attempt to restructure the business and it will continue to sell online.

The process will not affect The Body Shop’s global franchise partners. Its shops can be found today in about 70 countries, with as many as 10,000 employees and 3,000 stores globally.