Suppliers to The Body Shop will reportedly receive only a fraction of the estimated £219m owed to them after the retailer’s collapse and subsequent acquisition.
The British beauty business’ administrator, FRP Advisor, stated that suppliers would receive between 16% and 27% of the owed amount, according to a report by The Guardian.
This includes unsecured creditors such as landlords and charities.
Tax authorities, however, will be paid from the proceeds of the administration.
The Body Shop’s former owner Natura & Co was also owed £15m in debt over unpaid bills and for products supplied.
It follows retail tycoon Mike Jatania acquiring the embattled British brand, which saved 113 UK stores and 1,300 jobs in July 2024.
The Body Shop’s UK business collapsed into administration in February 2024 just months after being acquired by private equity firm Aurelius for £207m.
The store closures and job cuts came after a period of financial challenges for The Body Shop, including multiple consecutive quarters of losses with former owner Natura & Co.
In the UK, 197 stores closed as part of its restructuring process.
FRP Advisory was appointed to handle The Body Shop’s insolvency in the UK and launched an auction for the brand in May.
Auréa pulled ahead of rival bidders including Gordon Brothers, the private equity firm behind Laura Ashley.
Modella Capital, part of private equity house R Capital, and Alteri Investors, the owner of Bensons for Beds, had also made bids for the brand.
The Body Shop recently announced it was moving its UK headquarters as part of its new “cultural reset” strategy.
The British company is relocating to Brighton, which is where the company opened its first shop in 1976 – as a sign that the brand is going back to its roots.
The Body Shop’s new owner is now preparing to rebuild The Body Shop’s UK business and international presence in 2025.
Cosmetics Business has contacted FRP Advisory and The Body Shop for a statement.