AN ICONIC British high street chain has been rescued from administration following mass store closures.
The remaining 113 Body Shop stores in the UK have been bought by Auréa, after 82 were closed earlier this year.
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The Body Shop has been rescued from administration following mass store closures Credit: Alamy
It comes weeks after administrators FRP Advisory confirmed the chain was up for auction after a restructuring plan was not deemed viable.
Auréa confirmed to The Sun that she currently has no plans to close any of The Body Shop’s remaining stores.
The chain also employs over 1,500 workers across the UK.
A spokesperson said: “As with any business, particularly one that has ended up in administration, there is a need to manage costs, but we believe that stores are an important part of the brand’s connection with customers.
They added that they will continue to monitor The Body Shop estate and see how it behaves.
Charles Denton, chief executive of The Body Shop, said: “We believe we have a sustainable future ahead of us and working closely with the management team we aim to restore the unique, values-driven, independent spirit of The Body Shop.”
The Body Shop fell into administration on February 13, immediately following the closure of seven stores.
In April, administrators of the legendary high street brand proposed a company voluntary agreement (CVA).
A CVA is a way of restructuring that means a business can continue to operate by negotiating its debts, such as reducing rental costs with landlords.
At the time, FRP said it would sell the company and remaining assets if a CVA could not be agreed.
Why are stores closing up shop?
The Body Shop has also closed its Avon-style Body Shop at Home service for good and ended its Ambassador Program which was supposed to replace it.
Aurelius, which bought the company last November, also confirmed in January that it had sold most of The Body Shop’s business in mainland Europe and parts of Asia.
Since the chain went into administration, around 500 employees have lost their jobs and more than 270 roles at head office have been axed.
The Body Shop closed 82 branches in March and April in the following locations:
- bury
- Aylesbury
- Beverly
- Blackpool
- Carlisle
- Chippenham
- Farnborough
- Grimbsy
- Halifax
- Hempstead Valley
- High Wycombe
- Hull
- Ipswich
- Kendal
- Kings Lynn
- Loughborough
- Morpeth
- Perth
- Salisbury
- Stafford
- Abbot Newton
- Trowbridge
- Banbury
- Barnstaple
- Basildon
- Bedford
- Bexleyheath
- Blackburn
- Bolton
- Broughton Park
- Camberley
- Carmarthen
- Durham
- East Kilbride
- Edinburgh Gyle Centre
- Edinburgh Princes Mall
- Epsom
- Fareham
- Harlow
- Hastings
- Huddersfield
- Ilford
- Isle of Wight
- Islington
- Lewisham
- Lichfield
- Luton
- Macclesfield
- Middlesborough
- Northampton
- Oldham
- Peterborough Queensgate
- Swansea
- Telford
- Trowbridge
- Wakefield
- Walthamstow
- Wigan
- Wolverhampton
- Bournemouth
- Surrey Quays, London
- Oxford Street Bond Street, London
- Canary Wharf, London
- Cheapside, London
- Nuneaton, Warwickshire
- Ashford Town, Kent
- Bristol Queens Road
Who was the founder of The Body Shop, Anita Roddick?
Dame Anita Roddick, born 23 October 1942, was a British businesswoman, human rights activist and environmental activist.
During her lifetime, Anita was best known as the founder of the Body Shop – a cosmetics company that manufactures and sells natural cosmetic products.
Anita opened her first Body Shop in Brighton back in 1976.
The brand first started as a small shop offering quality skin care products in refillable bottles, with the belief that the business could be a force for good.
After that, the Body Shop became a global retail company serving more than 30 million customers worldwide.
An ardent activist, Anita has been involved in environmental and social activism, such as involvement with Greenpeace and The Big Issue.
In addition, in 1990, the late entrepreneur founded Children on the Edge – a charity that helps disadvantaged children in Eastern Europe, Africa and Asia.
In 2007, Anita, who also worked with her husband Gordan, sold the company to L’Oréal, but continued to have an active role in the business.
French firm L’Oreal paid £625m for the company, giving Anita and her husband Gordon more than £100m for their 18 per cent stake in the business.
In September 2007, Dame Anita Roddick died aged 64 of a brain haemorrhage after being admitted to St Richard’s Hospital, Chichester, West Sussex.
Her husband Gordon and her two daughters, Sam and Justine, were by her side.
Before she died, Anita revealed that she had been diagnosed with hepatitis C in 2004.
The late founder’s illness was first discovered during a routine blood test for a life insurance policy.
She lived with the disease for more than 30 years before it was discovered – until then she was suffering from cirrhosis of the liver.
In 2008, a year after her death, Anita’s will revealed that she had given all of her £51m to charity and the rest to tax.
HOW DID THE BUSINESS FAIL?
The Body Shop was founded by Anita Roddick and her husband Gordon in Brighton in 1976.
His goal was to set himself apart from other beauty retailers by focusing on ethical and natural ingredients.
The brand joined the L’Oreal group in 2006, before being acquired by Natura and Co. in 2017.
But the move to sell the business to L’Oreal in 2006 was seen by some as the key moment when its fortunes began to turn around.
Mark Constantine, co-founder of The Body Shop’s rival Lush, was its main supplier for years as part of his previous business.
He previously said that under L’Oreal’s ownership, moving production to the Philippines allowed for better profit margins, but at a cost.
He said: “You can’t make everything cheaper, remove value and make more profit without customers noticing and going elsewhere.
“They’ve lost that feeling you get when you buy a Body Shop product, that you’re helping to change the world.”
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Source: HIS Education