A cosmetics company now makes painful store closures, affecting nearly 50% of all locations, while simultaneously cutting jobs.
The Body Shop’s administrators have announced a restructuring plan for the retailer’s UK business.
Seven of the retailer’s 198 UK stores will close immediately, and future closures will leave “more than half” the current count operating.
Additionally, the Joint Administrators plan to cut headquarters staff by approximately 40%, aiming for a future headcount of more than 400 full-time employees.
According to a press release, “Stabilizing and strengthening the central core will also support The Body Shop’s international strategy, with Global Head Franchise Partners and wholesale partners in Asia, Middle East and Europe a cornerstone of future success.”
The UK arm of the The Body Shop has entered administration, the British version of bankruptcy protection, according to Reuters and other media reports, but it will continue to operate online and via its 199 UK brick-and-mortar stores for the time being.
Private equity firm Aurelius Group purchased the retailer from Natura &Co in November 2023 for nearly $258 million.
Now, FRP Advisory has been brought in to manage the restructuring process, per Retail Touch Points.
Originally founded in 1976 by Dame Anita Roddick, The Body Shop was known for its ethically sourced natural ingredients and refillable packaging.
Founder Roddick also was a vocal activist for environmental causes, beginning in 1986 with her support for Greenpeace’s Save the Whales campaign.
In 2006 Roddick sold the company to cosmetics giant L’Oréal, which sold it again to Natura &Co in 2017.
Worldwide, the company operates approximately 3,000 stores in 70 countries.
“The Body Shop has faced an extended period of financial challenges under past owners, coinciding with a difficult trading environment for the wider retail sector,” according to a quote from FRP in the Reuters article.
FRP also noted that “the Joint Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course.”
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Other Economy News Today
A massive retailer now permanently closes and begins a liquidation sale citing the decision was not made lightly, sources report.
The Salvation Army has confirmed the closure of one of its major thrift store locations, and customers are preparing for a liquidation sale.
The organization confirmed Friday that the store in Hopkinsville, Kentucky, about 22 miles from the state’s southwestern border with Tennessee, would shut down indefinitely next month.
Corps Officer Lieutenant Lindsey Galabeas said that the closure came after lengthy deliberation in an effort to transform the building to better serve residents, per Christian County Now.
“While the decision to close the store was not made lightly, we believe it is a responsible step forward in enhancing our ability to serve the community more effectively,” Galabeas told the outlet.
Financial struggles were also noted as a cause of the Salvation Army thrift store closing, including “sales and operational challenges.”
Galabeas stressed that the closing presented a better opportunity for the Salvation Army to do more, promising a clothing closet with free access to “gently used” items from community members who might need them.
“We plan to repurpose the store space to better meet the evolving needs of our community,” the lieutenant continued.
“Plans include establishing a clothing closet where our neighbors in need can access gently used clothing items.”
The official closure date is set for March 8, reports The-Sun.
It was noted in the press release from the Salvation Army that up until the final day of business, the Hopkinsville thrift store will operate on Mondays, Wednesdays, and Fridays from 11:00 am to 4:00 pm, per radio station WHOP.
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Also Read: This Massive Mall Retailer Is Now Closing In California
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