The British arm of The Body Shop has collapsed into the administration which is similar to Chapter 11 in the U.S.—and more than 2,000 jobs are at risk, according to reports. 

The Body Shop International Limited directors appointed Tony Wright, Alastair Massey and Geoff Rowley from FRP as joint administrators to try and save parts of the firm.

Natura & Co. sold The Body Shop to Aurelius Group late last year in a deal valued at $261 million. Despite the Aurelius takeover, The Body Shop experienced a tough economic climate over the past Christmas trading period which led to this fall into administration. 

Prior, L’Oreal owned The Body Shop after purchasing it from its famous founder, Dame Anita Roddick and her husband Gordon. Roddick and her husband owned the company until the L’Oreal deal in 2006.

The Body Shop was founded in 1976—and since the beginning, it’s been known as “an activist brand.” Roddick has championed ethical sourcing in cosmetics, environmental causes, and pioneered the crulelty-free movement in beauty. (She died in 2007 at age 64 from an acute brain haemorrhage.)

In an effort to keep up with its reputation and promote its stance on various causes, The Body Shop’s 2022 campaign in North America encouraged young people to vote, celebrated Canada’s ban on animal testing—and the company launched a refill program in its US stores last year. 

So what went wrong with the Bodyt Shop in the UK?

BBC spoke to retail consultant Mary Portas who blames the L’Oreal deal as the beginning of its end. “L’Oreal knows how to use brands,” she said: “It did not know how to run a retailer and so the soul went out of it.” 

What Will Happen Next to The Body Shop?

The Body Shop has approximately 200 retail stores in the UK, reports say, as well as online services, and some are expected to shut down. Going into administration protects creditors and can lead to a sale of the business and/or the closure of some or all stores and redundancies.
 
“Taking this approach provides the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalizing this iconic British brand,” an FRP statement said. “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,” the report mentioned. 
 
After Natura & Co reached an agreement to sell The Body Shop last November, Aurelius has since sold the business in most of Europe and parts of Asia to an unnamed buyer. 
 
As decisions are made by the FRP administrators updates will be provided to creditors and employees.