UK shock: The Body Shop chain has declared bankruptcy – closing nearly half of its stores

Cosmetics chain The Body Shop has declared bankruptcy in the UK.

Officials announced today that the company will close nearly half of its stores in the country and cut about 270 jobs at its headquarters.

“Seven stores will close today and more closures will follow,” said FRP, a consulting firm handling the company's restructuring in Britain. “Once (the restructuring plan) is completed, more than half of The Body Shop’s 198 UK stores will remain in operation,” FRP said, while head office staff will be reduced by around 40%.

The bankruptcy and restructuring issue concerns the United Kingdom only

The company employs approximately 7,000 people worldwide, including 2,200 in the UK, both in its offices and stores. Although there is no talk of laying off workers from stores, their closure translates into the loss of many jobs.

The company was sold at the end of 2023 by the Brazilian company Natura Cosmeticos to the German investment fund Aurelius for about 250 million euros. FRP said the bankruptcy and restructuring filing was intended to “protect the future” of the company, and only affected the UK and not the rest of the store network in other countries. However, it should be noted that after its acquisition, the group has already sold “loss-making businesses in most parts of continental Europe and some parts of Asia.”

According to an FRP statement, “following years of inefficiency and following a full assessment of The Body Shop’s UK operations,” officials have concluded that the current situation is “unsustainable.”

The Body Shop brand was founded in 1976 in Brighton by British Anita Roddick, a pioneer in the field of environmentally friendly and cruelty-free cosmetics. L'Oreal bought the company in 2006 for €940 million. At the time, Roddick was criticized for her choices, with some accusing her of “dealing with the enemy.” However, her health deteriorated and Anita Roddick died the following year.

Res-EMP