UK health and beauty retailer Bodycare has plunged into administration.
The chain has brought in Interpath Advisory to handle the process and will close 32 stores with the loss of around 450 jobs.
Founded in Lancashire in the 1970s, Bodycare has nearly 150 stores across the UK and employs around 1,500 staff.
It sells make-up, skin care, hair care, fragrance and toiletries at bargain prices, including major brands such as L’Oréal, Lynx and Clarins.
Owner Baaj Capital bought Bodycare from its founders in 2022 after it struggled through the Covid-19 pandemic.
“In common with a number of other bricks and mortar retailers, the company has faced a number of challenges in recent years which have negatively impacted its financial position,” Interpath Advisory said in a statement.
“This included rising costs, including rent and people costs, a delayed transition to its online retail platform, and the cost-of-living crisis impacting its customer base.
“In addition, a planned IPO in 2024 was aborted which led to a shortfall in funding.
“This, in turn, placed strain on supplier relationships, resulting in a shortage of stock.
“Despite the very best efforts of the directors to address these challenges, and with creditor pressure mounting, the difficult decision was taken to file for the appointment of administrators.”
Bodycare stores in 115 locations will continue trading as usual while administrators assess options for the business, which could include a potential sale.
Bodycare’s website, bodycareonline.co.uk, is no longer taking orders.
A message on the site reads: “Sorry, the shop you are looking [sic] is closed right now, please try again later.”
Nick Holloway, Managing Director at Interpath and joint administrator, said: “These remain challenging times for high street retailers as rising costs and reduced consumer spending continue to weigh heavily on trading.
“Unfortunately for Bodycare, which was also contending with a significant funding gap and increasing creditor pressure, these challenges proved too difficult to overcome.
“Our intention is to trade the majority of the Company’s stores in order to realise stock while we explore options for a possible sale of the business and its assets.
Challenging 2025
In its most recent accounts filed in June for the financial year ending 31 December 2024, Bodycare said a review of the business and “actions undertaken in 2024 are now showing positive movements in sales and gross margin”.
However, it noted that the festive period “did not meet expectations” due to “government policy on the winter fuel allowance which disproportionately affected our base customer, and the uncertainty around future tax rises especially NI [National Insurance]”.
Bodycare reported an operating loss of £800,000 for the period, down from £1.3m in 2023.
Turnover grew to £133m from £129m a year earlier, and gross margin ticked up to 35.6% from 34.4% in the same period the previous year.
In 2024, the chain opened 12 new stores and closed two.
It said it would slow down opening plans in future and continue to negotiate rents with landlords, according to the accounts filed on Companies House.
“We have slowed down the new store opening programme, we see too much risk and uncertainty in the current climate of increased costs and legislation coming from the UK government,” the business said.
Bodycare also noted the market softening in the second half of 2024 and expected this to continue into 2025.
It said: “The value market has been weaker in the second half of 2024 evidenced by competitor store closures and CVAs [company voluntary agreements]. “The market will remain soft through 2025, the business is focused on increasing margins and expanding [its] own brand to mitigate any loss in sales.”
The company secured a £7m Asset-Based Lending (ABL) facility to support cash flow “while executing its recovery plan”.
“The first quarter of 2025 has proved difficult for the retail sector arising out of uncertainty regarding the global impact of Donald Trump's tariff policy and the effect of the UK Employers National Insurance rise,” read a Directors' Report statement in the accounts.
“These external factors continue to present risks that the company must manage.
“However, the management's proactive approach to cost control and strategic store openings, combined with the financing structure in place, means that they believe that the company is in a position to weather the current storm, which they feel is temporary.”
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Lead image credit: Betty Longbottom / bodycare - Woolshops, via Wikimedia Commons