RISKY BUSINESS
Body shop calls in administrators with ‘significant number’ of jobs on the line and stores at risk of closing
It comes after the closure of its Body Shop at Home range
THE Body Shop bosses are set to call in administrators as early as next week.
A "significant number" of jobs and shops are at risk, with the brand set to begin insolvency processes in days.
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It is understood the chain - founded by Anita Roddick and her husband Gordon - will appoint FRP Advisory in a move affecting around 200 stores, Sky News reports.
Sources claimed there was a strong possibility that administrators would shut down a large number of The Body Shop's UK branches.
The iconic chain's global businesses across most of Europe and parts of Asia were sold to an unnamed buyer this week.
The retailer told RetailWeek 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".
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It added: "The Body Shop will also focus on more effectively reaching customers by strengthening digital platforms, developing new sales channels, and via differentiated retail experiences.
"The announced sale is another decisive step towards delivering a strong turnaround strategy for The Body Shop, supported by the right structure.
"The ambition is to create a modern and dynamic beauty brand, relevant to customers and able to compete for the long term."
An insider added that the administration process would not be extending to their global operation.
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NEW OWNERS
The Body Shop was taken over by a private equity firm called Aurelius in November 2023 in a £207million deal.
Sources claimed the new owners believed UK operations weren't brining in enough profits.
Store Closures Generic Explainer
This has already led to the closure of the Body Shop at Home range.
When Aurelius took over the company, it is understood The Body Shop employed about 10,000 people, and runs an estimated 3,000 stores in 70 countries.
It comes as strings of closures have swept the nation as the cost of living rises, energy bills soar and some businesses continue to feel the knock-on effect from the Pandemic.
Even industry giants have fallen victim to high street closures in recent months.
It comes as shoppers have been forced to slash their spending while the cost of running stores has also increased.
Figures from the British Retail Consortium (BRC) this summer found the UK had lost 6,000 stores over a five-year period.
Popular beauty retailer Boots sadly announced it will be closing 300 shops this year, following several closures in 2023.
Meanwhile, discount food shop Lidl, have also seen their fair share of locations shut down.
The full list, of which there are 1,168 locations, includes sites across all areas of Great Britain - including: 66 in Scotland, 83 in Yorkshire, 83 in central England, 91 in south London and 42 in south-mid Wales.
Bargain hunters will also be devastated to learn the discount retailer B&M closed yet another shop.
READ MORE SUN STORIES
For more information, The Sun has compiled a full list of major high street shops closing, including Tesco, Clarks and M&S.