A restructuring plan has been drawn up for The Body Shop UK; seven stores are to close today, with more to follow; some stores in central London will be among the first to close.
Other planned measures include the restructuring of jobs at the company’s headquarters: the number of employees there is to be reduced by around 40% to over 400 full-time employees. The headquarters includes both London Bridge and Littlehampton.
The chain, founded in 1974 and known for its cruelty-free and ethically sourced beauty products, appointed liquidators for its UK business last week and the latest measures are aimed at securing the “future of the retailer” in the UK.
A statement on February 20 said: “After years of unprofitability and following a comprehensive assessment of The Body Shop’s UK business, the joint administrators have concluded that the current store portfolio mix is no longer sustainable.”
It continued: “As an immediate measure, seven stores will close today, with more to follow. It is expected that more than half of The Body Shop’s 198 UK stores will still be open once the restructuring is complete.”
The seven stores immediately affected are: Surrey Quays (London), Oxford Street Bond Street (London), Canary Wharf (London), Cheapside (London), Nuneaton (Warwickshire), Ashford Town Centre (Kent) and Bristol Queens Road (Bristol).
FRP’s joint administrators are exploring various options to find a way forward for the business, which appears to have struggled with financial problems for a prolonged period under its previous owners, coinciding with a difficult trading environment for the wider retail sector.
The latest statement said the reduction in store space will be accompanied by “a renewed focus on the brand’s products, online distribution channels and wholesale strategies to bring the brand in line with its industry peers and support a return to financial stability.”
It went on to say that “following the earlier sale of loss-making businesses across much of continental Europe and parts of Asia and to support a simplified business, The Body Shop will also restructure roles at its head office to align with this forward-looking strategy and a more flexible, financially viable model.”
