The Body Shop in the UK has entered administration, with a potential risk of making up to 2,000 jobs redundant. Restructuring firm FRP has been appointed as administrator, saying that it would consider all options to find a way forward for the business.
This meant that the retailer's shops would remain open as usual while efforts were made to keep the firm afloat in the UK.
FRP Advisory said that creating "a more nimble and financially stable UK business" was an important step to becoming a modern beauty brand "relevant to customers and able to compete for the long term."
This might include cutting costs, such as shutting down some shops and laying off some staff.
The Body Shop Plagued by Ownership Issues, Financial Woes
According to the BBC, The Body Shop was started in the UK by the late Anita Roddick in 1976 from a single shop in Brighton. It soon grew into a global brand, pioneering ethical trading and a stance against animal testing of its beauty products.
Aurelius - the European private equity firm that bought the brand for £207 million ($260.8 million) in November - took the drastic decision to place it into administration after poor sales during the key Christmas trading period.
FRP added that The Body Shop faced "an extended period of financial challenges under past owners."
It is highly unlikely that The Body Shop's name and branding would change since the retailer's British business has over 200 shops and a handful of franchises across the UK as well as its headquarters in London.
