afaqs! news bureau

The Body Shop hires administrators to assess UK business

The brand has put its UK arm in administration, under the supervision of FRP, a business advisory firm.

The Body Shop, a well-known cosmetics company celebrated for its ethical hair and skincare products, has recently put its UK business in administration. This move, announced by administrators on Tuesday, could potentially put thousands of jobs in jeopardy.

FRP Advisory, a business advisory firm, has been brought in to oversee the administration process. This involves financial experts stepping in to try and salvage parts of the company.

In a statement, FRP announced, "Today, the directors of The Body Shop International Limited have appointed Tony Wright, Geoff Rowley, and Alastair Massey of business advisory firm FRP as joint administrators of the company, which operates The Body Shop's UK business."

The Indian arm of the brand has clarified that the administration is only applicable to the UK business. In a media statement, the brand has said, "The Body Shop India is a Head Franchise Market. This administration process relates to the UK business only and does not impact our Global Head Franchise Partners. 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."

Despite being acquired by German private equity firm Aurelius just in November, The Body Shop faced challenges in a difficult economic climate, particularly during the crucial Christmas trading period. This has prompted the new owners, third in seven years, to place the UK side of the business into administration.

This means that the company has appointed external financial experts to take control of its operations in the UK. These administrators will assess the company's financial situation, liabilities, and assets, with the aim of finding the best solution to address its financial challenges.

During the administration process, the administrators will work to maximise the value of the company's assets and operations. This could involve restructuring the business, selling off parts of the company, or seeking new investment to help stabilise its finances.

Established in 1976 by Anita Roddick, The Body Shop has become a fixture on the British high street. However, it has changed hands multiple times since Roddick sold it to French cosmetics giant L'Oreal in 2006.

With approximately 200 stores in the UK, accounting for about seven percent of its global total of around 3,000 stores spread across more than 70 countries, The Body Shop directly employs around 10,000 staff, with an additional 12,000 employed via franchises.

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