250 Body Shop shops might shut with 1000’s thrown out of labor
- New homeowners known as in insolvency directors weeks after it purchased the chain
Up to 250 Body Shop shops might shut throughout the nation with 1000’s of jobs in danger because the chain’s new homeowners name within the directors.
The chain, based by the late Dame Anita Roddick who handed away in 2007, was offered by Brazilian cosmetics chain Natura & Co to Aurelius Group in November
The £207 million deal noticed the funding group tackle the chain’s 250 British shops.
But they known as in insolvency directors simply weeks after it purchased the chain.
A ‘important’ variety of the retailers are like to shut, however an insider advised Sky News that precise numbers weren’t identified.
The closure means heartbreak for 1000’s of nostalgic clients – however many have expressed their concern for what’s going to occur to the employees.
Up to 250 Body Shop shops might shut throughout the nation with 1000’s of jobs in danger because the chain’s new homeowners name within the directors (file picture)
The chain, based by the late Dame Anita Roddick who handed away in 2007, was offered by Brazilian cosmetics chain Natura & Co to Aurelius Group in November
Nostalgic clients took to social media to precise their disappointment and their concern for the employees working for the favored chain
One particular person mentioned discovered Anita Roddick would have been ‘horrified’ on the information.
Some took to X to reminisce about their childhood recollections of buying on the widespread magnificence chain.
But many expressed their fear for individuals who face shedding their jobs, with one consumer saying: ‘Never knew Body Shop had been in bother. Two of my members of the family work there.’
Aurelius, which additionally owns sportswear retailer Footasylum and the now-bankrupt healthcare chain Lloydspharmacy, is now making ready to nominate FRP Advisory to deal with the insolvency technique of the corporate’s UK operations, Sky News reported.
An insider advised Sky that the insolvency of its UK arm wouldn’t affect the operation of its shops in the remainder of the world.
Two days in the past, it was revealed that The Body Shop’s former homeowners Natura wrote to Aurelius to search out out why former workers have not but acquired bonuses value £2million and £3 million that had been promised as a part of their severance.
RetailWeek reported that 20 former Body Shop workers are collectively owed the sum of cash that they’ve nonetheless not been paid.
Last week, it was revealed that Aurelius, which purchased the corporate in 2017 from L’Oreal for round £850 million, handed over a lot of its Europe and Asia enterprises to an unnamed ‘worldwide household workplace’ as a part of its turnaround technique for the long-troubled well being retailer, which instantly employs round 10,000 folks the world over.
In November, it emerged the excessive road magnificence retailer agreed to promote its 250 shops after combating profitability.
At the time, the non-public fairness purchaser, Aurelius, mentioned that it might have a possibility to ‘re-energise’ the retailer.
Founder of The Body Shop, Anita Roddick stands exterior one in every of her shops in 1985
‘We are delighted to be enterprise this acquisition of an iconic British model, which pioneered the cruelty-free and pure ingredient motion within the well being and sweetness market,’ mentioned Aurelius companion Tristan Nagler.
‘We sit up for working with CEO Ian Bickley and his staff to drive operational enhancements and re-energise the enterprise, and assist to ship the following chapter of success.’
The Body Shop was first arrange in 1976, opening its first retailer in Brighton, with the purpose of offering well being merchandise made with ‘ethically sourced and naturally-based elements’ that weren’t examined on animals.
Just seven years later, the enterprise had grown to 138 shops, because of a franchising mannequin that noticed a speedy rise in brick-and-mortar areas.
In 1984, the corporate was publicly listed in London, and its inventory worth by practically 11,000% within the first eight years of its itemizing.
By 1994, 9 out of ten Body Shop areas had been franchises.
In 2006, The Body Shop was offered to L’Oreal for greater than £650 million, a transfer that was thought of controversial on the time given the French firm’s coverage of animal testing.
Both Aurelius and FRP Advisory declined to remark when strategy by MailOnline.
MailOnline has contacted The Body Shop for remark.
