Uncertainty for Wigan workers as The Body Shop to cut almost 300 UK jobs and shut almost half of shops
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The Body Shop fell into administration last week, casting doubt on what would happen to its shops, including the branch in Wigan’s Grand Arcade.
Today administrators for the business said seven of its shops will shut their doors for good on Tuesday.
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It confirmed the closure of its stores at Surrey Quays London, Oxford Street London, Canary Wharf London, Cheapside London, Nuneaton, Ashford town centre Kent and Queens Road Bristol.
The group’s other stores will continue to trade until further updates from insolvency experts overseeing the process.
The Body Shop employs around 1,500 workers across its UK stores, with hundreds of these staff members expected to face redundancy as a result of the proposed closures.
It will also cut around 270 head office jobs as part of a heavy restructuring, leaving it with around 400 workers at its London headquarters.
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Hide AdAdministrators from FRP Advisory said in a statement: “After years of unprofitability and following a full evaluation of The Body Shop’s UK business, the joint administrators have concluded that the current store portfolio mix is no longer viable.
“This swift action will help re-energise The Body Shop’s iconic brand and provide it with the best platform to achieve its ambition to be a modern, dynamic beauty brand that is able to return to profitability and compete for the long term.”
The company hired administrators, who will assess offers for the brand and its assets, after years of financial struggles and a challenging backdrop for shoppers.
The retailer was founded in 1976 by Anita Roddick and her husband Gordon as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.
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Hide AdEuropean private equity firm Aurelius, which specialises in buying and turning around troubled firms, secured a £207m deal in November to buy The Body Shop from Brazilian cosmetics giant Natura & Co and took control of operations officially on January 1.
Aurelius agreed a deal late last month to sell the company’s operations in most of mainland Europe and in parts of Asia to an international family office in a “decisive step towards delivering a strong turnaround strategy” at The Body Shop.