The Body Shop administrators are closing dozens stores, despite the fact that they were profitable.
The Body Shop collapsed dramatically last month, just weeks after being acquired by private equity firm Aurelius. FRP administrators have announced that 82 UK stores will be closing over the next 6 weeks.
The Body Shop UK’s internal documents reveal that only 8 of the 206 stores in the UK were losing money last year.
The stores in Ipswich, Hempstead Valley and Hempstead contributed respectively £99,000 and £97,000 of profit last year. The closures will result in 500 job losses.
Sources close to FRP stated that the closures are based on the expected profitability this year. The stores had been losing money until the last two months.
The Body Shop was founded in 1976 by Anita Roddick, who died, and her late husband Gordon. Former insiders claim that the Body Shop owes money to charities such as The Big Issue and Amnesty International.
The closures will result in the loss of 500 jobs.
Insiders believe that Aurelius is going to buy the retailer out of administration, minus its liabilities.
FRP wrote to Natura, Natura’s former owner, asking why such a large sum of money was taken from the company between the announcement and the completion of the transaction.
Sources close to Natura confirmed that the inquiry is part of Natura’s extensive investigation.