The Body Shop Store (PC – The Body Shop)
One of the legendary British beauty brands The Body Shop has been placed under administration in the UK which might lead to shuttering of stores in its home market putting over 2,000 jobs at risk.
The Body Shop at a glance
Contacted over email, an official from The Body Shop UK clarified that the brand being placed under administration relates to their UK business only and that the global franchise partners are “not impacted” which includes Alshaya Group and Kamal Osman Jamjoom (KOJ) Group in the GCC region.
The Body Shop has issued an official statement which reads:
The Body Shop appoints administrators to accelerate restructuring of UK business.
The Directors of The Body Shop International Limited have appointed Tony Wright, Geoff Rowley and Alastair Massey of business advisory firm FRP as Joint Administrators of the company, which operates The Body Shop’s UK business.
The Body Shop UAE is a Head Franchise Market. This administration process relates to the UK business only and does not impact our Global Head Franchise Partners.
Taking this approach provides the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalizing this iconic British brand.
The Body Shop remains guided by its ambition to be a modern, dynamic beauty brand, relevant to customers and able to compete for the long term. Creating a more nimble and financially stable UK business, is an important step in achieving this.
The Joint Administrators will continue to trade the business in the UK whilst in administration, ensuring customers will be able to continue to shop in store and online for their favourite products.
Business as usual in the Middle East
Meanwhile, when we contacted KOJ Group to understand the state of The Body Shop business in the Middle East, Group Chief Executive Officer Hisham Al-Amodi said, “Our business in the UAE remains intact and we do not expect any change or impact on our operations and product supply chain. We are open for business as usual, ensuring our loyal customers will be able to continue to shop in our stores and online for their favourite products, as usual.”
Alshaya Group that operates The Body Shop stores in Kuwait, Qatar, Bahrain, Jordan, Türkiye and Poland also confirmed that its business-as-usual.
“We continue to serve our customers in Kuwait, Qatar, Bahrain, Jordan, Türkiye and Poland,” Nick Sandham, Vice President, Corporate Communications, Alshaya Group confirmed over email.
What lies ahead: Some possibilities
Industry insiders and sources closely following the current situation believe that The Body Shop business will survive with fewer stores in the UK. It is also likely that parts of the business will be sold off to interested parties.
When we asked one of The Body Shop partners from the Middle East if there is a remote possibility of the brand being bought over by a regional retail conglomerate, there was no response.
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