Stores under threat as Body Shop goes into administration
HIGH street beauty chain The Body Shop, which has stores in Farnborough and Camberley, has called in administrators and is facing potential closures.
The company, which also counts outlets in Woking, Guildford, Staines, Epsom and Kingston among its 200 stores nationwide, announced the move last week, and has brought in administrators from FRP Advisory.
Although buyers are being sought for the business and its assets, there is inevitable uncertainty over the future of its stores and workforce.
FRP has said the move into administration provides the “stability, flexibility and security” to find the best means of securing the future of the company. In a statement, they said: “The joint administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course.”
Despite this turmoil, The Body Shop will continue to operate, with all physical shops and the online site staying open and making sales.
The move comes just weeks after European private equity firm Aurelius became the new owners of the company.
Aurelius, a company known for reviving struggling businesses, bought The Body Shop from Brazilian cosmetics giant Natura and Co in a £207million deal last November. They officially took over on January 1.
At the time of the takeover, the business had around 10,000 employees worldwide.
Late last month, Aurelius sold the company’s operations in most of mainland Europe and parts of Asia to an international family office. FRP described this as a “decisive step towards delivering a strong turnaround strategy”.
FRP stated: “The Body Shop has faced an extended period of financial challenges under past owners, coinciding with a difficult trading environment for the wider retail sector.”
They added that swift action had been taken in the last month, including closing down The Body Shop At Home and selling its business across most of Europe and in parts of Asia.
Now, the focus is on restructuring the UK business.
FRP said: “The Body Shop remains guided by its ambition to be a modern, dynamic beauty brand, relevant to customers and able to compete for the long term.”