The Body Shop is struggling.

The Body Shop chain in the UK has just been declared bankrupt, while its international operations are undergoing restructuring due to financial difficulties.

FRP, the business consulting firm appointed to handle The Body Shop's bankruptcy proceedings in the UK, said that 199 stores continued to operate after February 14th, the date the company was declared bankrupt. However, this could lead to various scenarios, such as restructuring operations by reducing the number of stores and staff, or selling the company.

"Legal officers will review options to find a way forward for the business and provide updates to creditors and employees in the coming period," FRP stated.

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

In countries outside of the UK, The Body Shop is undergoing a restructuring of its operations. The venture capital firm Aurelius – the owner of the chain – has appointed a company to handle the sale of its subsidiaries in most European countries and some regions of Asia. The network being sold will account for 14% of the brand's sales.

Founded in 1976 in Brighton, England, by animal rights and human rights activist Anita Roddick, The Body Shop is one of the pioneering cosmetic brands described as "ethical," meaning it does not test on animals.

At the time of its launch, many of the ingredients used by this brand, such as shea butter, cocoa butter, aloe vera, and jojoba oil, were considered unusual. Its claims of responsibility towards animals, the environment, and society created a completely new concept in the cosmetics industry, which was gradually adopted 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 also promoting "ethical" cosmetics, causing it to gradually decline, according to Le Monde .

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

"The Body Shop has faced financial difficulties for a long time under its previous owners. In addition, the retail business environment in general has been challenging," FRP noted.

Phiên An ( according to Reuters )

Source link