The Body Shop owner Aurelius is first in line for a payout after it put the business into administration, despite previously pledging to “drive operational improvements and re-energise” the company.
The investment company is set to leave other parties with losses after it solidified its position as the brand’s top creditor before going on to break-up the business, placing 2,000 jobs at risk, according to The Times.
In November, Aurelius purchased The Body Shop and promised to revive the business.
However, it has now sold lossmaking parts of the company and placed its British arm into administration.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Labour MP on the Commons’ Treasury select committee Dame Siobhain McDonagh said: “Just before Christmas, Aurelius released a statement saying they would ‘re-energise the business’ and ‘deliver the next chapter of success’.
“Less than three months later they are putting the brand into liquidation and look like they are first in line to be paid. You have to question their sincerity. Did they ever intend to grow the business?”
She continued: “The same statement said that The Body Shop has been a pioneer in corporate social responsibility. If they want to live up to that, they had better put their shop and office staff first before paying out to themselves. There are more than 2,000 jobs at risk and I want to see them protected before private equity firms profit from this deal.”
The Body Shop formally appointed FRP as administrators to “accelerate restructuring” of its UK business earlier this week.
FRP said the administration gave the retailer “the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalising this iconic British brand”.
Click here to sign up to Retail Gazette‘s free daily email newsletter
5 Comments. Leave new
Aurelius. First in line should it not be Caveat Emptor and last in line
Once again the innocent are punished
These type of actions really shouldn’t be allowed. It’s the hardworking and dedicated people of companies that suffer and get penalised. The results of the payout really does allow actions to speak louder than words.
This is exactly what happened to Paperchase. Being apart of the little ant workers that worked in store, we had to just get on with it, get updates on what was happening from the news as some how they always knew first (that’s how we found out the shops would be closing and we would have no job at the end of it)
It was honestly the most stressful time I’ve ever experienced during my working career.
I really do hope for the best outcome for the teams.
I was only in the Milton Keynes store yesterday and the team there seemed upbeat and optimistic, let’s hope it stays that way.
The worst thing they did was getting rid.of the body shop at home
If this isn’t a case of police, I don’t know what it is