ALBAWABA - Following the cosmetics chain's bankruptcy last week, The Body Shop is slated to close over half of its 198 locations in the UK.
The Body Shop is in a tough spot and has to close almost half of its stores in the UK. The company's not making enough money, so administrators decided to shut down seven stores right away.
The company's administrators said that starting on Tuesday, seven of its stores will permanently close.
Nearly 100 stores will be closing soon, and about 270 people who work at the main office will lose their jobs. It's a big change for everyone involved.
"After years of unprofitability and following a full evaluation of The Body Shop's UK business, the joint administrators have concluded that the current store portfolio mix is no longer viable," a statement from FRP Advisory's administrators read.
After years of financial difficulties and against a difficult backdrop for consumers, the firm recruited administrators, who will evaluate proposals for the brand and its assets.
As part of a significant reorganization, it will also eliminate about 270 head office positions, leaving it with about 400 employees at its London headquarters.
More than half of The Body Shop's UK stores will stay open after things settle down. The company's bosses are saying they'll focus more on selling stuff online and through other stores.
The store, which specializes in ethically made skincare and cosmetics, was established in 1976 by Anita Roddick and her husband Gordon. They were among the first to encourage so-called ethical consumerism.
Only a few weeks have passed since the company was taken over by the European private equity group Aurelius.
Specializing in the purchase and turnaround of distressed businesses, Aurelius signed a £207 million agreement in November to acquire The Body Shop from Natura & Co., a major Brazilian cosmetics company.
Even with these changes, The Body Shop wants to keep doing what they do best: selling good products that are made responsibly. So, while things might look different in the future, they're still sticking to their values.
