UK high-street fixture The Body Shop has officially entered into administration, putting the future of up to 2,000 jobs in jeopardy.
This news comes just weeks after its acquisition by private equity firm Aurelius from Nature & Co in a pennies-on-the-dollar £207 million deal in November.
The Body Shop, established in 1976 by Dame Anita Roddick in Brighton, has been a stalwart of ethical consumerism, bringing cruelty-free beauty products to the mainstream.
Since its establishment nearly 50 years ago, The Body Shop has expanded to 70 countries with approximately 3,000 stores globally and employs around 10,000 people.
However, the UK arm of the business, which operates about 200 shops, has faced significant trading difficulties, leading to its administration under the guidance of FRP Advisory.
Aurelius has offloaded many of The Body Shop's European and Asian businesses to an undisclosed investor, as reported by Sky News.
Before its sale to Aurelius, The Body Shop attempted a rejuvenation strategy by transforming some of its outlets into ‘Changemaking Workshops’, a nod to its activist roots.
Aurelius is the third owner of the chain since founder Anita Roddick sold the chain in 2006 to L’Oreal for £652 million.
Despite these efforts, the retailer struggled to maintain its relevance and financial viability in the competitive UK market.
Shops are expected to remain open while administrators attempt to sort out a resume package.
“Whatever the outcome, it looks likely that many shops will shut for good, opening up fresh holes in high streets across the UK,” Susannah Streeter at Hargreaves Lansdown said on Monday of the impending administration.