The British natural cosmetics retailer The Body Shop is apparently in a deep crisis. Almost 50 years after its founding, the chain appears to be on the verge of filing for bankruptcy in the UK.
According to media reports, the British cosmetics chain The Body Shop is on the verge of bankruptcy. The company is currently preparing to appoint an expert to lead a restructuring, Sky News reported. The Body Shop has around 200 stores in the UK.
Only at the end of the year from German Investment funds accepted
The Body Shop’s stores in other countries will not be affected, it said. The cosmetics group, founded in Brighton in 1976, is also represented in Germany. At the heart of founder Anita Roddick’s vision was an ethical approach to business. She sold “ethically justifiable and nature-based ingredients from all over the world, in packaging that had no frills and was easy to refill.”
According to its own statements, the company also takes a clear stance against animal testing and strives to work fairly with farmers and suppliers. In 2006 the chain was taken over by the French company L’Oréal. In 2017, The Body Shop went to Brazilian competitor Natura Cosméticos.
After numerous quarters of losses, the German investment fund Aurelius finally took over the cosmetics retailer in 2023 for around £207 million. “We are excited about the acquisition of this British cult brand. After all, The Body Shop was a pioneer in the cosmetics market in the areas of cruelty-free and natural ingredients,” said Aurelius partner Tristan Nagler last November.
Consequences for employees and suppliers
According to Aurelius, The Body Shop currently employs around 7,000 people and is present in 89 markets. These include more than 900 own stores in 20 countries as well as partnerships with franchise companies that operate around 1,600 stores in 69 countries. The group’s headquarters are in London.
According to the British newspaper “Guardian”, bankruptcy would lead to store closures and layoffs. The impact on global suppliers, including many small companies, would also be significant. The brand’s product portfolio includes bath and body care products with natural ingredients, skin care, fragrances, hair care, makeup and gift items.
Christoph Prössl, ARD London, tagesschau, February 13, 2024 10:41 a.m