The Body Shop administrators are investigating allegations that millions of pounds were taken out of the company prior to its collapse.
FRP Advisory is looking into claims of unaccounted for funds that pre-date The Body Shop’s sale to private equity firm Aurelius, with the investigation remaining at an early stage, according to The Telegraph.
Senior MPs have called for a deeper review of the ethical beauty retailer’s downfall as it faces store closures and job losses.
Figures seen by The Telegraph revealed the company’s UK retail arm saw £19m of profits on sales of £163m during the run-up to its collapse.
The 2023 figures are for the chain’s 198 UK stores and do not cover costs from its global operations.
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When The Body Shop fell into administration in February, administrators said including its overseas operation, the firm had notched up a £60m loss in 2022.
The news comes as The Sunday Times revealed administrators to The Body Shop were shutting dozens of shops despite them being profitable.
Although FRP administrators said 82 of the company’s UK shops will shut over the next six weeks, internal company documents viewed by the publication found just eight of its 206 UK stores were loss-making last year.
The economic health of its UK operations will likely lead to further questions around the circumstances surrounding The Body Shop’s administration.
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