Body Shop prepares for insolvency process
The private equity owner of The Body Shop is preparing to hire administrators for its UK stores.
It is preparing to appoint FRP Advisory to oversee an insolvency process, leaving staff at its 200 stores in the lurch.
Administrators would most likely consider closing a significant number of UK stores, City sources told Sky News last night.
The Body Shop was bought by private equity firm Aurelius in November in a deal it said was worth £207 million.
According to reports last night, the new owner had decided that The Body Shop was performing worse than initially thought.
In the lurch: The Body Shop was bought by private equity firm Aurelius in November in a deal reportedly worth £207m
The cosmetics company has struggled to keep up with its rivals as the High Street has faced a recession.
Mediocre sales at the skincare retailer convinced Natura, which also owns Avon, to abandon the brand last year.
The Body Shop was founded in Brighton in 1976 by Anita Roddick and became a favorite among the middle class.
Roddick, who died in 2007 at the age of 64, offered discounts to customers if they returned empty containers and advocated for green causes.
In recent years, the group has taken on social causes such as period poverty and refugee rights.
But analysts said The Body Shop has lost its competitive advantage.