Administrators for The Body Shop have announced that 300 jobs will be cut at its head office, and nearly half of its 198 UK stores could close, as the retailer fights for survival. Seven stores shut immediately on Tuesday, with more closures expected. The head office workforce in London and Littlehampton will be reduced by 40% to 400 employees.
The retailer, which employs over 2,200 people in the UK, entered administration last week, less than two months after being acquired by restructuring specialist Aurelius. The entire activism team, a key part of the brand's ethical identity, has reportedly been dismissed.
The seven stores closing on Tuesday are in Surrey Quays, Oxford Street near Bond Street, Canary Wharf, Cheapside, Nuneaton, Ashford Town Centre, and Bristol Queens Road. Administrators from FRP stated that the current store portfolio is no longer viable, but expect more than half of the 198 stores to remain open after restructuring.
With 1,600 store employees, closing half the estate could result in nearly 800 job losses. The administrators said the cuts are part of creating a more nimble, financially viable model, with a focus on products, online sales, and wholesale strategies. They added that relationships with franchise and wholesale partners in Asia, the Middle East, and Europe will be crucial.
Staff will need to apply to the government-backed Redundancy Payments Service for payoffs, with some having worked for the company for decades. Most departments have been affected, including IT, marketing, sustainability, and European web operations. Aurelius, the main creditor, is expected to take back the chain after closures and job cuts.
The Body Shop was bought by Aurelius for £117m in a deal finalised in January. The future of its Irish, mainland European, and Japanese divisions is uncertain after being sold to Alma24, which has close links to Aurelius. The German arm has entered insolvency, and Belgian operations are also heading that way. Fair trade suppliers report being left with over $1m worth of ingredients that may never be paid for.
