Thousands of jobs are at risk as cosmetics chain The Body Shop, which runs 199 shops across the UK, has gone into administration
Insolvency experts at FRP Advisory have been brought in to oversee the administration process after poor sales during the Christmas shopping season continued into January.
Administrators are expected to seek buyers for the business and its assets, but the process will nonetheless cast a shadow over the future of its stores and workforce.
The brand currently has 199 stores across the UK and employs over 2,000 people.
It comes just weeks after private equity firm Aurelius took over the business after buying The Body Shop for £207 million in November.
The retailer was founded in 1976 by Anita Roddick and her husband Gordon as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.
In a statement, The Body Shop said: “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 Joint Administrators will now consider all options to find a way forward for the business and will update creditors and employees in due course.
“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 administration, ensuring customers will be able to continue to shop in store and online for their favourite products.”
The Body Shop had previously been facing an “extended period of financial challenges” under past owners, that pushed Aurelius to close The Body Shop at Home and sell businesses across Europe and Asia.