FRP, acting as the administrator for The Body Shop, has published a comprehensive list of stores slated for closure. Following the immediate closure of the initial seven stores, an additional 75 stores will undergo phased closures over the next four-to-six weeks. This process will result in the loss of 489 jobs.
The Body Shop plans to close approximately half of its 198 stores in the UK and reduce the size of its head office, resulting in significant job losses. According to the firm overseeing the restructuring of the beauty retailer, closures will commence immediately on Tuesday. The Body Shop currently employs approximately 2,200 individuals in the UK, including 750 personnel at its head office. The administrators stated that these cuts are aimed at revitalizing the brand.
The closures will impact various locations across the UK, from Swansea to Glasgow, resulting in nearly 800 job losses when considering the 300 redundancies at the head office.
However, according to the administration firm FRP, 116 stores will remain operational following these changes, affecting solely the company’s UK operations.
The Belgian division of The Body Shop has been declared bankrupt by the District Court of Central Netherlands, as confirmed by a spokesperson for the curator’s office.
Around twenty branches of the company are affected by the bankruptcy declaration. A Dutch trustee has overseen the bankruptcy proceedings, as the stores are legally considered part of the Dutch business unit, The Body Shop Benelux.
Despite the bankruptcy, the Dutch outlets of the British cosmetics chain remain operational, with approximately 150 employees. The company boasts around 900 company-owned stores globally, in addition to approximately 1,600 franchise outlets.
Earlier this month, reports surfaced that more than 60 stores and the German head office, which employs around 400 individuals, were likely to close. Dr. Biner Bahr, an insolvency specialist at the White & Case law firm, has been appointed to handle the affairs of the German business.
Previously, administrators had outlined plans to retain over half of Body Shop stores while announcing the closure of seven outlets. Subsequently, they informed staff that an additional 75 stores would shutter over the next four to six weeks.
The retailer, which employs over 2,200 individuals in the UK, entered administration this month, shortly after being acquired by the restructuring firm Aurelius in November for £207m.
Reports suggest that the UK retail giant Next is contemplating a rescue offer for the struggling UK company, while the beauty supplier maintains its success in India. It has been emphasized that FRP Advisory will concentrate on nurturing partnerships in Asia, Europe, and the Middle East.
