The Body Shop's UK operations have gone into administration, dealing a further blow to Britain's shopping destinations and putting more than 2,000 jobs and 200 stores at risk.
The retailer, owned by private equity firm Aurelius, appointed administrators with FRP Advisory on Tuesday. The company said this step was the best way to protect the brand's future.
The buyout firm, which also owns sportswear chain Footasylum and Lloyds Pharmacy, acquired The Body Shop from Brazilian cosmetics conglomerate Natura & Co for 207 million pounds ($262 million) late last year. They agreed to acquire the company at the appraised value. Natura had owned the brand since acquiring it from L'Oréal in 2017.
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The Body Shop was founded in 1976 by animal rights activist Anita Roddick and began as a small shop in Brighton, on the south coast of England. The company gained popularity by selling cosmetics and hygiene products that were not tested on animals.
Britain's shopping malls, retail parks and major shopping streets have been hit by the decline of some of the biggest brands. Low-cost chain Wilco went into administration in August last year, putting 12,000 jobs at risk, and some branches have since been taken over by rival retailers. Other brands put into administration in the past 18 months included Paperchase, Cath Kidston and M&Co.
“Cruelty-free cosmetics is not the niche market it once was,” says Matthew Padian, a partner specializing in restructuring and bankruptcy at law firm Stevens & Bolton. “It appears that The Body Shop may just be another Wilco company, one with a history but one that has not kept up with the demands of today's fickle consumers.”
The Body Shop faces increased competition from rivals who can target younger consumers online. According to McKinsey & Company, e-commerce in the beauty sector nearly quadrupled between 2015 and 2022, accounting for more than 20% of sales.
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