The natural cosmetics chain The Body Shop in Great Britain is seeking protection from creditors. Jobs and store closures could now be at stake.
the essentials in brief
-
The British natural cosmetics retailer The Body Shop has fled into creditor protection proceedings.
-
On Wednesday (February 14th), the German branch of the group – The Body Shop Germany GmbH – also filed for bankruptcy at the Düsseldorf District Court.
-
The chain particularly stands for “ethically justifiable and nature-based ingredients from all over the world” and speaks out against animal testing.
The British natural cosmetics chain The Body Shop is apparently in financial difficulties. According to British media reports, she is now on the verge of filing for bankruptcy, writes Merkur.
On Tuesday (February 13th), the consulting firm FRP, which was appointed as receiver, announced that the British subsidiary of The Body Shop had fled into creditor protection proceedings – only a few months after it was taken over by the Munich financial investor Aurelius, adds the Reuters news agency.
“The Body Shop has experienced a lengthy period of economic challenges under its previous owners, coupled with a difficult retail environment,” FRP said.
However, business operations should be maintained for the time being.
The company, which was founded in 1976 in the seaside resort of Brighton by the environmentalist and human rights activist Anita Roddick, operates almost 200 branches with around 2,000 employees in Great Britain alone. The company has around 7,000 employees worldwide.
Im Video: Cosmetics chain closes all branches in German-speaking countries
These are the prospects
The natural cosmetics chain was particularly notable for using “ethically justifiable and nature-based ingredients from all over the world”. In addition, the packaging did not contain any major “bells and whistles”. In addition, these could also be easily refilled, writes “Spiegel”. The company also took a clear stance against animal testing, rejected “corporate greed” and advocated “ethical relationships with suppliers,” adds “The Guardian.”
She did things that no one else had the courage and courage to do.
Mark Constantine, cosmetics manufacturer Lush
“She did things that no one else had the courage and courage to do,” quotes “The Guardian” Mark Constantine, the former supplier to The Body Shop and later founder of the cosmetics manufacturer Lush. He was inspired and frightened by “Roddick’s combination of iron principles and lightning-fast business acumen.”
However, the process may now result in store closures and layoffs. In addition, an “important source of revenue for a global network of small farmers and producers” would be threatened.
German branches are also facing closure
Initially it was also said that businesses in other countries were not affected, wrote the “Spiegel” on Tuesday (February 13th) and cited information from the Sky “News” broadcaster.
Now, according to “Spiegel”, the branches in Germany are said to have been hit. As “Spiegel” further reports, The Body Shop Germany GmbH filed for bankruptcy on Wednesday (February 14) and submitted a corresponding application to the Düsseldorf District Court. In 2021 there were 66 The Body Shop branches in Germany and more than 350 employees.
In addition, it is apparently on The Body Shop’s agenda that the company wants to sell its businesses “in most parts of mainland Europe and parts of Asia,” the specialist portal “Retail Week” reported at the end of January. An agreement has already been signed. It is therefore still unclear what will happen to employees in Europe.
Im Video: Luxury department store group KaDeWe files for bankruptcy
The Body Shop
Headquartered in London, UK, the company is currently present in 89 markets. In 2022, the natural cosmetics manufacturer generated sales of 791 million euros.
After its founding, the chain was taken over by the French group L’Oréal in 2006 for £652 million. 18 months later, founder Anita Roddick died as a result of a cerebral hemorrhage.
In 2017, the company was sold again – then to the Brazilian competitor Natura Cosméticos for one billion euros and in 2023 the German investment fund Aurelius bought the group. According to the “Börsen Zeitung”, the private equity firm is said to have paid 207 million pounds (around 242 million euros) for the chain.
-
Sources used:
-
Reuters news agency
-
Spiegel: “The Body Shop is apparently facing bankruptcy in Great Britain”
-
Merkur: “Cosmetics giant The Body Shop is facing bankruptcy – consequences for German branches too”
-
Retail Week: “Exclusive: The Body Shop sells parts of Europe and Asia business as it takes ‘decisive step’ towards change”
-
Spiegel: “The Body Shop is also insolvent in Germany”