The Body Shop, founded by Anita Roddick in the 1970s, has faced financial difficulties and is set to appoint administrators. This may lead to job losses and store closures. The company was purchased by Aurelius just six weeks before Christmas, but weak trading over the holidays and insufficient working capital have resulted in the need for insolvency proceedings. FRP Advisory is likely to be appointed as administrators soon, and it is expected that a significant number of stores will be closed.
Anita Roddick, an environmental campaigner and activist, founded The Body Shop in 1976 and owned it for three decades until she sold it in 2006. Roddick’s strong ethical values were reflected in the company’s policies, such as refusing to stock products tested on animals and sourcing ingredients from natural products traded ethically. After Roddick’s departure, the company changed ownership twice before being acquired by Aurelius in November.
The international businesses of The Body Shop have already been sold to an unknown family office. The decision to sell to L’Oreal in 2006 for £652m attracted criticism for departing from the company’s values. As a result of these issues, the future of The Body Shop remains uncertain as it faces financial difficulties.