The Body Shop collapses - what it means for you including gift cards
The Body Shop has collapsed into administration - but what does this mean for shoppers?
The high street cosmetics retailer runs around 200 shops across the UK and employs over 2,000 people, having first been launched as a single shop in Brighton by the late Dame Anita Roddick in 1976. But the business has struggled in recent years, with administrators blaming its collapse on "an extended period of financial challenges under past owners" and "a difficult trading environment" for the wider retail sector.
Dame Anita sold the company to L'Oreal for £652million in 2006, before it changed hands again to Brazilian beauty giant Natura in 2017 for £880million. It was most recently sold to European private equity firm Aurelius in late last year for £207million.
The Body Shop has today appointed insolvency experts from FRP Advisory to handle the administration process. FRP said: “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.”
Are you a Body Shop worker and are you concerned about your job? Let us know by emailing: [email protected]
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Will shops remain open?
Yes, the administrators have confirmed shops will remain open while it decides what happens next to the business. This does mean you're able to shop and make purchases as normal at The Body Shop.
It is worth noting that only the UK business is affected by the administration. The Body Shop has stores in more than 70 countries
Can I still use my gift cards?
Yes, shoppers are still able to spend their gift cards. But when a business falls into administration, the company behind this process can decided to stop accepting vouchers at any point.
Will there be a closing down sale?
We don't know yet if FRP plans on closing any The Body Shop stores, nor has it announced any immediate redundancies today. But if stores are shut down, there will most likely be sales to clear any remaining stock.
Is this the end of The Body Shop?
When a business collapses into administration, it doesn't necessarily mean it will disappear forever. The role of the administrator is to try and save as much of the business as possible, normally by selling assets or restructuring it, to cut down costs and reduce debts.
If a company in administration can't be saved, then it is normally liquidated. This is when the business is fully closed down for good.
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