LONDON (EFE).- The Body Shop chain, dedicated to natural beauty products, has entered bankruptcy proceedings, putting about 2,000 jobs at risk.
However, the stores will remain open as always while creditors try to save the company, which was set up in the 1970s by businesswoman Anita Roddick, who opened her first business in the southern English town of Brighton.
Officials – FRP – indicated that all options will be considered, and that, by entering into bankruptcy proceedings, they “provide stability, flexibility and security to find the best means to ensure the future” of the chain.
“Administrators will now consider all options to find a way out for the business and will update creditors and employees in due course,” FRP added.
Restructuring The Body Shop
“After taking rapid action over the past month, including closing The Body Shop At Home and selling its business across most of Europe and parts of Asia, focusing on the UK business is the next important step.” In restructuring The Body Shop, FRP noted.
“The Body Shop continues to be guided by its ambition to be a modern, dynamic beauty brand, relevant to customers and competitive over the long term. Creating a more resilient and financially stable British business is an important step towards achieving this.
New owners, European company Aurelius
Today's announcement came weeks after new owners, European private equity firm Aurelius, took control of the company.
The Body Shop – which Roddick originally sold in 2006 to L'Oréal – has faced a long period of financial challenges, coinciding with a difficult retail business environment.
The success of the chain – which began in 1976 – has transformed it into a global brand, a leader in ethical commerce and a stance against cosmetics testing on animals.
Officials are expected to try to sharply cut costs, including real estate and rent costs, which could lead to job cuts.
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