Jobs at risk as The Body Shop set to appoint administrators

Like many businesses, The Body Shop did not see the footfall it needed over Christmas and in the January sales, the company is now in significant financial trouble and there are planned shop closures and redundancies.

The Company has been around since the 1970’s and was started by the Late Dame Anita Rodderick, who I was lucky enough to meet many years ago when she gave a speech about women in business. Rodderick began the business with a single store in Brighton in 1976 and then sold the business in 2006 for £652m to L’Oreal, who in turn sold it in 2017 for £880m, another and final purchase of the business came last year for £207m.

The Company is now set to enter into Administration, but what does this mean?

An Administration is designed to hold a business together while plans are formed either to put in place a financial restructuring to rescue the Company, or to sell the business and assets to produce a better result for creditors than a liquidation.

Administration can also be used where neither of these objectives can be achieved, simply as a mechanism to liquidate assets and distribute the proceeds to secured or preferential creditors.

If your business is also experiencing the same troubles and would like to speak to a Licensed Insolvency Practitioner, then please do not hesitate to contact our office on 0161 546 8143 or info@parkerwalsh.co.uk

‍