The UK branch of The Body Shop has entered into administration, resulting in its collapse.

 The UK-based cosmetics chain, The Body Shop, has entered administration just months after being acquired by German company Aurelius. This move puts over 2,200 jobs at risk. Despite efforts to revive the business, including dismal trading over the holiday season, Aurelius was unable to turn the company's fortunes around. The appointment of accounting firm FRP Advisory as administrators has raised concerns about the future of the business, which was founded by Anita Roddick in 1976. The Body Shop currently operates nearly 200 stores in the UK, along with a distribution center and head office. The administrators have stated that they will explore all options to find a way forward for the business and will provide updates to creditors and employees in due course. Last month, Aurelius closed down The Body Shop at Home direct sales business and sold off its loss-making stores in Europe and parts of Asia. It is expected that the brand will continue to exist in some form, albeit with a significantly reduced number of stores. Aurelius itself is a potential buyer for a scaled-down version of the business, possibly with only 100 stores, but other interested parties have also been contacted by the administrators, including industry 

bidders like Next.

Next has expanded its portfolio by acquiring various brands such as Cath Kidston and Fatface, which are now available in their physical stores and online. This trend has gained momentum due to the rise of online sales, which have impacted traditional retail. Sainsbury's and Frasers Group have also followed suit by incorporating brands like Argos, Habitat, Agent Provocateur, and Jack Wills into their offerings.

According to a beauty industry expert, The Body Shop is not a brand that can be effectively sold as part of a wholesale collection in other retailers' stores. It requires its own chain of stores to properly convey the details of its ethical sourcing. The source emphasized that simply placing a few products on the shelves of a store like Boots would diminish the brand's unique appeal.

If the remaining business experiences widespread store closures, it would signify another stage in the brand's decline. The Body Shop, established by Roddick and her husband Gordon in 1976, became a global symbol of fair and sustainable trading. Initially starting with a shop in Brighton, the brand rapidly expanded through a franchise model while adhering to strict moral principles.

The company maintained family ownership for a span of thirty years until it was sold to the French cosmetics corporation L'Oréal in 2006 for a sum of £652m. Unfortunately, the founder, Roddick, passed away the following year. During this time, The Body Shop had established a strong reputation for its ethical stance, which included refusing to stock products tested on animals and sourcing natural ingredients through ethical trade.

The decision to sell to a global corporation left many loyal customers disappointed and opened the door for competitors like Lush, Neal's Yard, and Aesop to enter the market.

As The Body Shop's sales and profits began to decline, L'Oréal sold the company to Brazil's Natura, a more suitable owner due to its ownership of the Australian natural beauty brand, Aesop. However, Natura later made the ill-timed decision to acquire the home-selling cosmetics group Avon in 2019. This deal resulted in a significant debt burden for Natura, compounded by the impact of the Covid pandemic and rising interest rates worldwide.

In order to focus on its core Latin American market and alleviate its debts, Natura made the decision to sell Aesop and The Body Shop. Aurelius emerged as one of the few bidders willing to meet the asking price.

The administrators of The Body Shop stated that "prioritizing the UK business is the next crucial step in the company's restructuring." They further emphasized that this approach would provide stability, flexibility, and security in finding the best strategy to secure the future of The Body Shop and revitalize this iconic British brand.