The Body Shop is at risk of losing its B Corp status, which it was first granted while under its previous owner Natura &Co.
The ethical beauty retailer was awarded its certification in 2019, making it one of the biggest global B Corps and the biggest beauty chain with a B Corp rating outside Latin America, according to Retail Week.
Speaking to the publication, a B Lab spokesperson, which assesses businesses seeking B Corp certification and monitors complaints on its members, said The Body Shop’s rating was under review following complaints on the company and its compliance.
They said: “When there is a change of ownership, a certified B Corp must notify B Lab of their intent to remain within the B Corp community. After this, large enterprises such as The Body Shop must recertify within two years of the change to maintain their certification.
“B Lab has received complaints regarding The Body Shop as part of our public complaints process. These complaints are being reviewed within the wider context of The Body Shop’s change of ownership in December 2023 and news of its administration in February 2024.”
“We are looking at all the above issues to determine The Body Shop’s eligibility for continued B Corp certification.”
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An insider close to the situation said there was speculation that this could also impact Natura &Co’s B Corp ranking after how it managed the sale of the cosmetics company.
In February, The Body Shop fell into administration three months after being sold to private equity owners Aurelius.
Last month, it was revealed that the chain collapsed because its private equity buyer failed to secure new funding when HSBC withdrew its line of credit.
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