The Body Shop is preparing for bankruptcy
The private equity owner of the Body Shop is preparing to recall the directors of its British stores.
It is preparing to appoint advisory firm FRP to oversee the insolvency process, leaving staff at its 200 stores in the lurch.
Sources in the city told Sky News last night that officials were likely to consider closing a large number of its UK stores.
The Body Shop was bought in November by private equity firm Aurelius in a deal it said was worth £207m.
According to reports last night, its new owner decided The Body Shop was performing worse than first thought.
In trouble: The Body Shop was bought in November by private equity firm Aurelius in a deal it said was worth £207m.
The cosmetics company has struggled to keep up with its rivals as the High Street faces a downturn.
Lackluster sales at the skincare retailer convinced Natura, which also owns Avon, to ditch the brand last year.
The Body Shop was founded by Anita Roddick in 1976 in Brighton, and became a favorite among the middle classes.
Roddick, who died in 2007 at the age of 64, offered discounts to customers if they returned empty containers and championed green causes.
In recent years, the group has addressed social issues such as period poverty and refugee rights.
But analysts said the Body Shop had lost its competitive edge.
(tags for translation) Daily Mail