The Body Shop appears to be headed for layoffs, as its stores are expected to close soon in the UK, to cut costs. The retailer, with about 200 stores in the UK and about 2,500, worldwide, has entered into an agreement with an international family office for the sale of its business in Europe and even parts of Asia. That means, the company has entered administration. It has been reportedly confirmed by FRP, the advisory firm looking into the matter, that the administration process pertains to The Body Shop’s UK operations.
Creditors and employees are expected to be informed soon of the measures to be adopted next.
If the business goes into administration, it will not only bring some relief from debts, but will also make the business leaner. This move, it is hoped, will help revitalise the UK brand and make it stable and secure for the future.
It is true that the company has been battling a financial crisis for some time now.
Launched in 1976, The Body Shop was sold by the owner, late Dame Anita Roddick, to L’Oreal, the French cosmetics brand, for £652m in 2006, a year before she died. A decade later, L’Oreal sold The Body Shop to Brazil’s Natura for about £800 million. Recently, it was bought over by Aurelius, the equity firm.
The brand reportedly has about 10,000 direct employees and 12,000 indirect ones who are employed by the franchises. It operates about 3,000 stores in more than 70 countries.
Its retail operations in India began in 2006, under Quest Retail, an Indian franchise.
