Yesterday, according to The Guardian, the Body Shop’s suppliers are set to receive no more than approximately a quarter of the £219 million ($284 million) owed to them following the ethical beauty retailer’s collapse into administration. According to a report, unsecured creditors—including small charities, local councils, and cosmetics manufacturers—will recover only between 16 and 27 percent of the money owed.
Founded by Anita Roddick in 1976, The Body Shop entered administration in February 2024 under the German restructuring specialist Aurelius, just three months after it was acquired from Brazilian beauty giant Natura. The fallout led to the closure of over 80 UK stores and the loss of more than 750 jobs, while the company’s overseas divisions, including in the US, Canada, and Germany, were also impacted. However, a consortium led by British cosmetics entrepreneur Mike Jatania acquired the retailer in September 2024, saving 1,300 jobs and preserving 113 UK stores.
Administrators from FRP disclosed that Jatania’s Aurea Group paid at least £44.3 million for The Body Shop. While UK tax authorities and employees owed holiday pay will be compensated in full, unsecured creditors—including organizations such as Children on the Edge, E-Cycle, MindOut, and the organic certification body Ecocert—will receive only a fraction of what they are owed. The largest single supplier debt, over £13 million, was owed to Avon, which had manufactured products for The Body Shop under its former owner Natura.
At the time of its collapse, The Body Shop’s total debts exceeded £276 million, comprising £6.3 million in tax liabilities, £44 million owed to trade creditors, £63 million from lease liabilities and other borrowings, and £143 million owed to related suppliers within the business. Notably, its previous owner Aurelius received no payment in the restructuring process.
Under the leadership of former Molton Brown CEO Charles Denton, the business has reported a profit within its first 100 days post-acquisition. While The Body Shop’s global footprint has significantly diminished from its peak of 3,000 stores, it continues to operate in 83 international markets, primarily through franchise partners. The retailer maintains a presence in key regions, including Europe, Canada, Australia, India, Malaysia, Indonesia, and South Korea.
