What happened to the Body Shop?

The Body Shop administrators are investigating claims that millions were removed from the business before its collapse last February.

The Telegraph revealed that FRP, which took over the cosmetic chain’s British arm after it fell into administration, is exploring allegations of unaccounted-for funds prior to the sale to private equity group Aurelius.

The investigation remains at an early stage, the Telegraph said.

Figures seen by the Telegraph have shown that The Body Shop’s UK division posted profits of £19 million (€22.2 million) on revenues of £163 million (€190.5 million) in the period before its collapse.

These figures covered The Body Shop’s 198 shops across the UK in 2023 but not the costs incurred by the company’s global operations.

FRP revealed that when the company went into administration, figures which included The Body Shop’s operations outside the UK showed a 2022 loss of £60 million (€70.14 million).

The chain’s apparent financial vigour could prompt questions regarding the circumstances surrounding the company’s decline into administration and Aurelius’s role, the Telegraph said.

Meanwhile disagreements have erupted between Natura, the Brazilian cosmetics group which owned The Body Shop, and Aurelius regarding £3 million (€3.5 million) in promised payoffs to 30 high-ranking staff members.