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© Reuters. FILE PHOTO: A person talks on the telephone with The Body Shop within the background, Sao Paulo, Brazil, November 14, 2023. REUTERS/Amanda Perobelli/File Photo
By James Davey and Kylie MacLellan
LONDON (Reuters) -The British enterprise of the Body Shop has collapsed into administration, placing 2,000 jobs in danger on the one-time pioneering moral cosmetics retailer.
Founded in Brighton, southern England, in 1976 by late environmentalist and human rights activist Anita Roddick, the Body Shop was well-known for selling pure, ethically-sourced merchandise and rejecting animal testing.
The retailer was one of the crucial in style on the British excessive avenue within the Nineteen Eighties and Nineteen Nineties however has confronted a lot better competitors from newcomers lately, together with from these additionally touting moral credentials.
FRP, the enterprise advisory agency appointed as administrator, on Tuesday mentioned the Body Shop’s 199 UK shops and on-line service would proceed to commerce.
“The Joint Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course,” it mentioned.
Going into administration, a type of creditor safety, can result in a sale of the enterprise, the closure of some or all shops and redundancies.
The UK operation’s guardian firm had already offered its enterprise throughout most of Europe and in elements of Asia.
CHANGING OWNERS
The Body Shop was purchased by L’Oreal in 2006, earlier than altering palms once more in 2017 when the French cosmetics large offered it to Brazilian cosmetics maker Natura&Co for 1 billion euros.
But after combating profitability, Natura in flip offered it on in November final 12 months, to personal investor Aurelius Group in a deal valued at 207 million kilos.
“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,” mentioned FRP.
It is the primary main UK retail casualty of 2024.
Last 12 months British homeware and family items low cost retailer Wilko shut down, with the lack of over 9,000 jobs, although a few of its 400 shops have been acquired by different retailers.