New Owners Call in Administrators for UK Chain
The Body Shop, founded by Anita Roddick and her husband Gordon, is facing a bleak future as bosses prepare to call in administrators as early as next week. A "significant number" of jobs and shops are at risk, and the brand is set to begin insolvency processes in the coming days. The chain's global businesses in most of Europe and parts of Asia were recently sold to an unnamed buyer. The new owners have cited a lack of profitability in the UK operations, leading to speculation that many stores will be closed.
Focus on Important Markets and Digital Platforms
The retailer has stated that it will prioritize its strategically important markets and global head franchise partner relationships. It also plans to strengthen its digital platforms, develop new sales channels, and provide differentiated retail experiences. The aim is to create a modern and dynamic beauty brand that can compete in the long term.
Takeover by Aurelius and Closure of Body Shop at Home Range
The Body Shop was taken over by private equity firm Aurelius in November 2023 in a £207 million deal. The new owners have expressed dissatisfaction with the profitability of UK operations, leading to the closure of the Body Shop at Home range. Prior to the takeover, The Body Shop employed approximately 10,000 people and operated around 3,000 stores in 70 countries.
High Street Closures Sweep the Nation
The Body Shop's potential administration comes amid a wave of closures across the UK. Rising living costs, soaring energy bills, and the lingering effects of the pandemic have taken a toll on businesses. Even industry giants like Boots and Lidl have been forced to close multiple stores. According to the British Retail Consortium, the UK has lost 6,000 stores over the past five years. The full list of closures includes major retailers like Tesco, Clarks, and M&S.
For more information on high street closures, including a comprehensive list of major retailers shutting down, visit HOAR.
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