The Body Shop administrators said it will retain “more than half” of the brand’s 198 UK stores, with seven shops set to close today.
The ethical beauty chain will also axe around 40% of head office roles, to around 400 full-time staff.
Administrators FRP, which were appointed last week, said: “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.
“As an immediate step, seven stores will close today, with additional closures to follow. It is expected that at the conclusion of the restructuring, more than half of The Body Shop’s 198 UK stores will remain open.”
The administrator said the reduced store footprint would coincide with “a renewed focus on the brand’s products, online sales channels and wholesale strategies, bringing the brand in line with industry peers and supporting a return to financial stability”.
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The head office restructuring, which will see headcount reduce by around 40%, follows not just the store closure plans but the sale of The Body Shop’s loss-making businesses in much of mainland Europe and parts of Asia last month.
FRP said the cuts would “support a simplified business” and would align with the retailer’s “more nimble, financially viable model”.
The administrator has also decided to close The Body Shop’s Ambassador programme.
Despite offloading much of its international business, the retailer said that ita franchise and wholesale partners would be a “cornerstone of future success” for The Body Shop.
FRP added: “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.”
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