• Fri. Mar 1st, 2024

The Body Shop’s Ethical Legacy in Jeopardy as Insolvency Proceedings Threaten to Shut Down Stores

ByEditor

Feb 11, 2024
Body Shop facing potential job losses as administrators are called in

In the 1970s, The Body Shop was founded by Anita Roddick with a strong emphasis on ethical values. Over the years, the company’s policies reflected her commitment to environmental campaigning and activism. However, in recent times, The Body Shop has faced financial difficulties that may lead to job losses and store closures.

The company was acquired by Aurelius just six weeks before Christmas in 2020, but weak trading over the holidays and insufficient working capital have resulted in insolvency proceedings. FRP Advisory is likely to be appointed as administrators soon, and it is expected that a significant number of stores will be closed.

Despite these challenges, The Body Shop’s international businesses have already been sold to an unknown family office. Roddick sold the company in 2006 after owning it for three decades, and her departure led to changes in ownership twice before its acquisition by Aurelius in November 2020. Criticism was leveled against her decision to sell to L’Oreal for £652m in 2006 as it departed from the company’s values.

The future of The Body Shop remains uncertain as it faces financial difficulties, but its legacy of ethical values and environmental campaigning continues to inspire many people around the world.

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