The decline of The Body Shop: the pioneering natural cosmetics chain enters bankruptcy proceedings

When The Body Shop's first store opened in the English town of Brighton in the seventies, natural cosmetics was a niche reserved for herbalists and some small artisan shops.

The firm, founded by Anita Roddick, was one of the first companies to wave the flag of environmental activism and its products quickly became popular around the world.

But the pioneering chain has experienced one of its worst moments this week after declaring bankruptcy in the United Kingdom, where some 2,000 jobs and 200 stores remain up in the air.

The future of the rest of a workforce that totals 10,000 employees in 66 countries is also unclear, including Spain, where it has 267 permanent employees and 43 its own stores (and 21 franchised ones), according to the latest accounts deposited in the commercial registry, corresponding to 2022.

Customers of The Body Shop will be able to continue shopping as normal, at least for now.

The stores will remain open until its provisional administrator, the firm FRP Advisory, puts its accounts in order and the owner fund, the European

private equity

firm Aurelius, decides the future of the company that bought the Brazilian Natura last November for 207 million pounds (236 million euros).

Around the world, The Body Shop has around 3,000 points of sale, including its own stores and franchisees.

The administrators have not yet specified how the financial situation may affect the staff, the stores and the franchisees.

In a statement, FRP has assured that it will take into account “all options” for the business to continue operating after years of difficulties due to weak sales and several changes of ownership.

“Having taken swift action over the last month, including closing The Body Shop At Home [a scheme that allowed independent sellers to distribute their products from their homes] and selling its business in most of Europe and parts Asia, focusing on the United Kingdom is the next important step in the restructuring,” FRP said.

“The Body Shop continues to be guided by its ambition to be a modern and dynamic beauty brand, relevant to customers and able to compete over the long term,” he added.

In any case, the bankruptcy process has been opened in the United Kingdom, which temporarily leaves out international franchises, including Spanish ones.

Annie with designer Viviennt Westwood and Anita Roddick, during a demonstration against Trident nuclear missiles in London.Gtres

In January, the European fund signed an agreement to sell part of its business with a “family-owned international investment firm” both in Europe, excluding the United Kingdom, and Asia, as part of its “determination to make a strong shift in the strategy.” ”.

In total, the sale affects about 14% of global external income, both in sales in physical stores and online, but without further detail.

The Body Shop's financial difficulties have been growing as more and more competition arose and the organic, natural or vegan cosmetics market believed in sales, while some companies were left behind.

Roddick remained in control of the company until it was acquired by L'Oréal for £652 million in 2006, just a year before the founder's death.

In 2017, the French company sold it to the Brazilian group Natura for about $1.12 billion, and it divested itself of The Body Shop in November.

It is now in the hands of the Aurelius fund.

Not only competition has been growing in this market.

The death of the founder has been associated with a decline in the initial values ​​that drove the company half a century ago.

The Body Shop was one of the first businesses with the aim of demonstrating that, by managing an income statement, the world could be improved: it contributed to changing 24 laws in 22 countries by mobilizing its clients against animal testing, For example.

Some comments on social networks these days and analysts consulted especially in the British press suggest that The Body Shop has not been able to adapt to the changes.

David Boynton, former CEO of the firm and an expert in the cosmetics industry, rejects this statement in a message on Linkedin after learning that the company was benefiting from bankruptcy regulations.

The former manager explains that since 2018 they have put hundreds of new products on the market and made great modernization efforts.

Then came the pandemic, the consequences of the war in Ukraine and the economic decline of its main market, the British.

And he adds: “The team at The Body Shop should be proud of what has been done in recent years in extremely challenging circumstances (...).

People who knew Anita know that she would be proud… I am.”

Follow all the information on

Economy

and

Business

on

Facebook

and

X

, or in our

weekly newsletter

Subscribe to continue reading

Read without limits

Keep reading

I am already a subscriber

_