The Body Shop: Liverpool store at risk as The Body Shop collapses into administration

The Body Shop's UK business has collapsed into administration, putting up to 2,000 jobs and hundreds of stores at risk.

Merseyside has lost a number of its The Body Shop sites in recent years, including Birkenhead and Liverpool Bold Street, and the news brings fears that the remaining stores in Liverpool ONE and Cheshire Oaks too could be forced to shut up shop.

For now, the ethical beauty retailer's stores will remain open while efforts are made by administrators - FRP - to save the firm. FRP said it will 'consider all options to find a way forward' for the 'iconic British brand'

Created by the late Dame Anita Roddick in 1976, The Body Shop quickly grew into a global brand, with a strong stance against animal testing. Changing hands three times since it was sold in 2006, The Body Shop was acquired in November by Aurelius, a private equity firm, in a deal it said was valued at £207m.

Retail sources said the new owner came to the conclusion that the company lacked working cash and was performing less well than expected after the purchase closed at the beginning of the year. It was reported previously that the administrators might consider 'closing a significant chunk' of The Body Shop's UK stores, although they cautioned against speculating on exact figures at this stage.

Discussing the decision to put the UK chain into administration FRP said: “Taking this approach provides the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalising 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.

“The Body Shop remains guided by its ambition to be a modern, dynamic beauty brand, relevant to customers and able to compete for the long term. 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 has faced an extended period of financial challenges under past owners, coinciding with a difficult trading environment for the wider retail sector. Having taken swift action in the last month, including closing down The Body Shop At Home and selling its business across most of Europe and in parts of Asia, focusing on the UK business is the next important step in The Body Shop’s restructuring.”