The new homeowners of The Body Shop are lining up directors for its British arm simply weeks after taking management of the cosmetics retailer, in a transfer which might threaten vital numbers of retailers and jobs.
Sky News has learnt that the corporate based by Anita Roddick and her husband Gordon almost half a century in the past is making ready to nominate FRP Advisory to deal with an insolvency course of for its UK operation, which trades from round 200 shops.
City sources mentioned on Friday that the directors have been finally more likely to take into account closing a major chunk of The Body Shop’s UK retailers, though they confused that it was untimely to invest on particular numbers.
The Body Shop employs a lot of individuals in Britain, together with at its head workplace in London.
The administration course of for its UK operations won’t affect the model’s world franchise companions, based on one insider.
In latest days, The Body Shop’s companies throughout most of Europe and components of Asia have been bought to an unnamed household workplace.
The retailer advised RetailWeek, which first reported the worldwide transaction, that it “further prioritises The Body Shop’s strategically important markets and global head franchise partner relationships, which it will look for opportunities to build”.
“The Body Shop will also focus on more effectively reaching customers by strengthening digital platforms, developing new sales channels, and via differentiated retail experiences,” it added.
“The introduced sale is one other decisive step in the direction of delivering a robust turnaround technique for The Body Shop, supported by the suitable construction.
“The ambition is to create a modern and dynamic beauty brand, relevant to customers and able to compete for the long term.”
The Body Shop was acquired in November by Aurelius, a personal fairness agency, in a deal it mentioned was valued at £207m.
Retail sources mentioned that after the deal closed at the beginning of this 12 months, the brand new proprietor concluded that the corporate had inadequate working capital and was buying and selling extra weakly than it had anticipated.
The firm has already determined to shut its Body Shop at Home division, which was struggling financially, whereas a report this week mentioned that Natura, its earlier proprietor.
The insolvency course of within the UK might permit a slimmer, extra financially viable enterprise to emerge after its struggles beneath a succession of company homeowners.
Aurelius was mentioned to have seen off competitors to purchase The Body Shop from rival bidders together with Alteri Investors, personal fairness agency Epiris and Elliott Advisors, the proprietor of bookseller Waterstones.
At the time of the acquisition, The Body Shop employed about 10,000 individuals, and operates roughly 3,000 shops in 70 international locations.
Although it has struggled for worthwhile progress for years, it retains a distinguished presence on British excessive streets.
The Roddicks have been distinguished champions of environmental causes, a positioning which helped it achieve an edge over rival retailers throughout the Nineteen Eighties and ’90s.
Its opposition to the animal testing of cosmetics was additionally uncommon within the a long time instantly after it was based.
Its distinctiveness has, nonetheless, been diminished in recent times by the emergence of rivals which have additionally put sustainability on the coronary heart of their companies whereas extra successfully focusing on youthful customers.
Dame Anita died in 2007.
Natura was reported to have paid greater than $1bn to purchase The Body Shop in 2017.
It was owned by L’Oreal, the cosmetics big, previous to its sale to Natura.
Aurelius and The Body Shop declined to remark.
Source: information.sky.com”