Administrators are expected to try to drastically reduce costs, including property costs and rent, which could result in layoffs.

By EFE

The Body Shop chain of stores, which specializes in natural cosmetic products, has gone bankrupt, putting around 2,000 jobs at risk.

However, the shops will remain open as usual while creditors try to save the company, which was founded in the 1970s by businesswoman Anita Roddick, who opened her first business in the southern English city of Brighton.

Administrators -FRP- have indicated that all options will be considered and that, entering bankruptcy proceedings “provides stability, flexibility and security to find the best way to guarantee the future” of the chain.

“Administrators will now consider all options to find an exit for the business and will provide creditors and employees with updated information in due course,” FRP added.

“After taking swift action over the past month, including closing The Body Shop At Home and selling its business in most of Europe and parts of Asia, focusing on the UK business is the next important step.” in the restructuring of The Body Shop,” FRP said.

“The Body Shop continues to be guided by its ambition to become a modern and dynamic beauty brand, relevant to customers and able to compete in the long term. Creating more agile and financially stable UK businesses is an important step towards achieving this,” he said.

Today’s announcement comes weeks after a new owner, European private equity firm Aurelius, took over the business.

The Body Shop – which Roddick originally sold in 2006 to L’Oreal – has faced financial challenges over a long period of time, coinciding with a difficult trading environment in the retail sector.

The success of the chain – started in 1976 – turned it into a global brand, a pioneer in ethical trading and against animal testing of cosmetic products.