The UK arm of ethical beauty retailer The Body Shop is reportedly set to appoint administrators in the coming days. Restructuring experts FRP Advisory are expected to be appointed after a disappointing trading performance over Christmas led to insufficient levels of working capital. Private equity firm Aurelius bought the company from Brazilian beauty firm Natura for £207m ($283m) late last year. Although there are unlikely to be significant closures of the brand’s more than 200 British shops, there will be a focus on reducing costs, including on rent and property, and increasing online presence.
The Body Shop was established in 1976 by the late Dame Anita Roddick, grew under her stewardship, and became recognised for its ethical approach to trading, including its refusal to test beauty products on animals. The company was sold to French beauty multinational L’Oreal in 2006 for £652m, a move that some saw as a betrayal of its values. L’Oreal subsequently sold it to Natura, which Aurelius acquired.
Mark Constantine, co-founder and CEO of rival company Lush, told the Sunday Times that under L’Oreal’s ownership profit margins improved thanks to the company offshoring its manufacturing to the Philippines and “marketeers discounted to create sales”. But Constantine also said that customers had become aware that the company was cheapening its products and values in search of profit. Aurelius stated that it aimed to revitalise the chain’s fortunes in the high-growth beauty market. The Body Shop has 10,000 employees and operates 3,000 stores worldwide
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