The Body Shop struggles

The Body Shop chain in the UK has just been placed into bankruptcy, while international operations are being restructured due to financial difficulties.

Business advisory firm FRP, which has been appointed to handle the insolvency proceedings for The Body Shop in the UK, said 199 stores would continue to operate after February 14, when the company was placed into administration. But this could lead to a number of scenarios, including restructuring operations by reducing the number of stores, staff or selling the company.

"Legal officers will consider options to find a way forward for the business and update creditors and employees in the coming time," FRP said.

The Body Shop store on Oxford Street, London, England, February 13. Photo: Reuters

Outside the UK, The Body Shop is restructuring its operations. The Aurelius venture capital fund, which owns the chain, has appointed a consortium to sell its subsidiaries in most of Europe and parts of Asia. The network being sold will account for 14% of the brand's sales.

Founded in 1976 in Brighton (UK) by animal rights and human rights activist Anita Roddick, The Body Shop is one of the pioneering brands in the field of cosmetics described as "ethical", meaning not tested on animals.

At the time of its inception, many of the ingredients the brand used, such as avocado, cocoa, aloe vera, and jojoba oil, were considered exotic. Its claims of animal, environmental, and social responsibility created a whole new concept in the cosmetics industry and were gradually followed by many other brands.

The Body Shop grew exponentially in the 1980s, opening up to two stores a month and going public. However, the chain faced increasingly fierce competition from new brands, including those that also promoted “ethical” cosmetics, causing it to “fade away,” according to Le Monde .

In 2006, The Body Shop was acquired by L'Oreal. In 2017, it was sold to Brazilian cosmetics maker Natura&Co for €1 billion. Natura then sold the brand in November 2023 to Aurelius Group for £207 million ($260 million) due to profitability difficulties.

"The Body Shop has faced financial difficulties for a long time, under previous owners. At the same time, the general retail business environment is also challenging," FRP commented.

Phien An ( according to Reuters )

Source link: https://vnexpress.net/the-body-shop-chat-vat-4711614.html