The British arm of The Body Shop, the nearly 50-year-old cosmetics company known for ethical hair and skin products, has gone bankrupt, administrators said Tuesday, putting thousands of jobs at risk.
The retailer has appointed experts from FRP Advisory to oversee its administration – a British process in which financial experts are brought in to try to save parts of a business.
“Today, the directors of The Body Shop International Limited have appointed Tony Wright, Geoff Rowley and Alastair Massey of business consultancy FRP as joint administrators of the company, which operates The Body Shop's UK operations,” said a statement from FRP.
“This approach provides the stability, flexibility and certainty to find the best way to secure the future of The Body Shop and breathe new life into this iconic British brand.”
The trustees will inform creditors and employees in due course.
German private equity firm Aurelius had only bought The Body Shop in November, but the retailer ran into problems during the crucial Christmas period due to the difficult economic climate.
The Body Shop was founded in 1976 by Anita Roddick and has become a fixture on the British high street, but has had several owners since selling it to French cosmetics giant L'Oréal in 2006.
The Body Shop has around 200 stores in Britain, or around seven percent of the global total of around 3,000 stores in more than 70 countries.
The company employs approximately 10,000 people directly, with a further 12,000 employed through franchises.
Since the acquisition, Aurelius had already sold The Body Shop's operations in most of mainland Europe and parts of Asia to an undisclosed buyer.
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