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The Body Shop has appointed administrators for its UK arm, weeks after its new private equity owners took control of the business in a £207mn deal.
The retailer, which has about 200 shops in Britain, has appointed FRP Advisory to oversee the administration, during which time the company will continue to trade.
“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,” said FRP in a statement on Tuesday.
The decision to appoint administrators was taken after Aurelius, The Body Shop’s private equity owners, concluded the company had insufficient working capital after trading poorly in recent weeks.