THE WHAT? Private equity firm Aurelius is set to appoint administrators for The Body Shop’s UK operations just weeks after acquiring the retailer from Natura &Co for £207 million.
THE DETAILS The Body Shop, which has about 200 outlets in Britain, faces financial difficulties with insufficient working capital and weaker trading performance than expected. The administration process, which could lead to store closures and job losses, is aimed at securing lower rents and reducing operational costs to stabilize the business financially.
THE WHY? This move is part of Aurelius’s broader strategy to turn around the struggling retailer, which includes selling parts of the business in mainland Europe and Asia. The administration is not expected to impact The Body Shop’s global franchise partners.
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