The Body Shop’s UK business is set to call in administrators, just weeks after being acquired by a private equity group.
The struggling cosmetics retailer is expected to appoint FRP Advisory later this week, Sky News has reported.
City sources told Sky News that the administrators are likely to explore options which involve closing a significant amount of The Body Shop’s 200 UK stores. One insider said the administration process will not impact the brand’s global franchise partners.
The retailer was recently acquired by private equity group Aurelius for £207m from Brazilian group Natura – which had paid £880m for The Body Shop in 2017. The group, which invests in fashion and sportswear brands including Footasylum, said at the time that it will work with The Body Shop to “drive operational excellence” and “re-energise” the business.
Aurelius had seen off competition from other potential buyers for the business, including Bensons for Beds owner Alteri Investors, former Hotter Shoes owner Epiris, and activist investors Elliott Advisors.