The Body Shop is reportedly considering a rescue strategy through a controversial restructuring approach.
Administrator FRP is in discussions with the company over undergoing a Creditors Voluntary Arrangement (CVA), according to Sky News.
This strategy aims to renegotiate lease terms with landlords, while shutting down underperforming stores.
CVA's more than doubled in 2023 in response to soaring debt levels.
FRP said: “We have been provided with trading forecasts which are based on ongoing discussions with key suppliers, landlords and other relevant stakeholders.
“Once we are satisfied that we are in receipt of a workable CVA proposal we will revert to creditors.”
Administrators warned that a sale of The Body Shop and its assets could still be on the cards, but said such a CVA would allow the retailer to continue trading under investment firm Aurelius’ ownership.
Aurelius took over The Body Shop at the start of the year, before 2023 results came in worse than expected, partially due to discounted sale of stock, forcing the retailer into administration in February.