The British arm of The Body Shop, the almost 50-year-old iconic cosmetics firm famend for its skincare, magnificence and bathtub merchandise, has entered administration, officers mentioned Tuesday, putting 1000’s of jobs in danger.
The retailer has appointed specialists from FRP Advisory to supervise administration – a U.Ok. course of the place monetary specialists are drafted in to attempt to save components of a agency.
“Today, the directors of The Body Shop International Limited have appointed Tony Wright, Geoff Rowley and Alastair Massey of FRP as joint administrators of the company, which operates The Body Shop’s U.K. business,” mentioned an FRP assertion.
“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.”
Administrators will replace collectors and staff in the end.
‘Icon of eco-beauty’
German personal fairness agency Aurelius had purchased The Body Shop solely in November, however the retailer bumped into hassle in a troublesome financial local weather over the important thing Christmas buying and selling interval.
“The Body Shop failed to scrub out a sales decline, with damp revenues during the crucial festive period pushing an icon of eco-beauty into administration,” lamented Susannah Streeter, head of cash and markets at stockbroker Hargreaves Lansdown.
The Body Shop was based in 1976 by Anita Roddick and has turn into a staple of the British excessive road, however it has been below numerous house owners since she offered it to French cosmetics big L’Oreal in 2006.
The Body Shop has about 200 retailers within the U.Ok., or round 7% of its worldwide whole of some 3,000 shops in additional than 70 international locations.
The firm instantly employs about 10,000 workers, whereas 12,000 extra are employed through franchises.
Roddick, who died in 2007 from a mind hemorrhage, had quickly expanded the business from modest beginnings with a willpower to supply merchandise that had not been examined on animals.
She set out additionally to make her business environmentally pleasant, with clients inspired to return empty containers for refilling on the authentic store in Brighton, on England’s southern coast.
‘Rivals steal a march’
“In the 1980s, The Body Shop was the place to go for young shoppers to splash out on fresh scented bubbles and beauty ranges, with a deep environmental conscience and a focus on social justice and conserving nature,” added Streeter at Hargreaves Lansdown.
“But now shops like Lush maintain the larger pocket cash draw for tweens and teenagers, lured in by aromatic bathtub bombs and progressive product components.
“Rivals have stolen a march on what used to be the Body Shop’s unique eco-credentials.”
Brazil’s Natura Cosmeticos, which had purchased The Body Shop from L’Oreal, offered it on the finish of final yr to Aurelius for 207 million kilos ($261 million at present alternate charges), far lower than the earlier house owners had paid.
Since taking up, Aurelius had already offered The Body Shop business in most of mainland Europe and components of Asia to an unnamed purchaser.
“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,” directors added in Tuesday’s assertion.
“Having taken swift action in the last month, including closing down The Body Shop At Home and selling its business across most of Europe and in parts of Asia, focusing on the U.K. business is the next important step in The Body Shop’s restructuring,” the assertion mentioned.
Source: www.dailysabah.com