Body Shop to shut almost half of its stores and cut 270 jobs
The Body Shop is to shut nearly half of its 198 UK shops after the cosmetics chain fell into administration last week.
It will also cut around 270 head office jobs as part of a heavy restructuring, leaving it with around 400 workers at its London headquarters.
The group also employs around 1,500 workers across its UK shops, with hundreds of these workers expected to face redundancy as a result of the proposed closures.
Administrators for the business said seven of its shops had shut their doors for good yesterday.it confirmed the closure of its stores at Surrey Quays London, Oxford Street London, Canary Wharf London, Cheapside London, Nuneaton, Ashford town centre Kent and Queens Road Bristol.
The group’s other stores will continue to trade until further updates from insolvency experts over seeing the process.
Administrators from FRP Advisory said: “After years of unprofitability and following a full evaluation of The Body Shop’s UK business, the joint administrators have concluded that the current store portfolio mix is no longer viable.
“This swift action will help reenergise The Body Shop’s iconic brand and provide it with the best platform to achieve its ambition to be a modern, dynamic beauty brand that is able to return to profitability and compete for the long term .”
The company hired administrators, who will assess offers for the brand and its assets, after years of financial struggles and amid a challenging backdrop for shoppers.
The retailer was founded in 1976 by Anita Roddick and her husband Gordon as one of the first companies to promote ethical consumerism, focusing on ethically produced cosmetics and skincare products.
The dramatic over haul comes only weeks after new owners, European private equity firm Aurelius, took control of the business. Aurelius secured a £207 million deal in November to buy the body shop from brazilian cosmetics giant Natura & Co. it only took control of operations officially on January 1.
Aurelius agreed a deal late last month to sell the company’ s operations in most of mainland Europe and in parts of Asia to an international family office in a“decisive step towards delivering a strong turnaround strategy” at The Body Shop.