The Body Shop Suppliers to Receive a Fraction of £219m Debt
The Body Shop’s suppliers, which include small charities, local councils, and cosmetics manufacturers, will receive no more than a quarter of the £219m owed to them following the company’s fall into administration, a report by administrators has revealed. This Body Shop suppliers payouts, ranging between 16% and 27%, highlights the financial struggles faced by unsecured creditors in the beauty retailer’s collapse.
Suppliers and Charities Among Those Hit by Reduced Payouts
Administrators from FRP Advisory have reported that The Body Shop’s unsecured creditors include not only suppliers but also several charities, such as Children on the Edge, which operates in countries like Uganda and Bangladesh, and MindOut, a mental health group based in Brighton. Other organisations affected include E-Cycle, a Welsh IT recycling service employing disabled people.
The organic certification body Ecocert and key global trade suppliers have also suffered losses. Among them, Avon, the cosmetics group previously owned by The Body Shop’s former parent company, Natura, faces a debt of over £13m for manufacturing products.
Importantly, the administrators have fully paid tax debts and employee holiday pay, leaving unsecured creditors to recover only a small fraction of their owed amounts.
The Collapse of The Body Shop UK
The Body Shop, founded in 1976 by Anita Roddick, had been a leading ethical beauty retailer. However, it recently faced turbulent years of restructuring and ownership changes. After Aurelius, the German restructuring firm, acquired The Body Shop’s UK operations from Natura, the company entered administration in February 2024, just three months later.
This collapse led to the closure of 80 British stores, resulting in the loss of more than 750 jobs. Internationally, the parent company’s financial troubles forced the closure of stores in the US, Canada, and Germany.
Despite these challenges, a consortium led by British cosmetics tycoon Mike Jatania rescued the business in September 2024. Under the acquisition, Jatania’s Aurea Group paid at least £44.3m, preserving 113 UK stores and saving 1,300 jobs.
Body Shop Suppliers’ Payouts Prioritised Last in Financial Recovery
The administration report details that The Body Shop had debts totalling £276m at the time of its collapse. These included £6.3m in taxes, £44m owed to trade creditors, £63m in lease liabilities and borrowing, and £143m to related suppliers within the wider business. Of these, tax authorities and employee entitlements were given full priority in payouts.
Meanwhile, the unsecured creditors, which include a mix of suppliers, landlords, and charities, received next priority. Unfortunately, their recovery will range between just 16% and 27% of what they are owed.
Notably, Aurelius, the company’s former owner before it entered administration, has received no payout from the proceedings.
A New Chapter Under Charles Denton
The Body Shop has since embarked on a path to recovery under the leadership of former Molton Brown boss Charles Denton. Now operating in 83 overseas markets with over 1,300 outlets—many of which are franchise-run—the retailer appears to be stabilising.
Reports suggest that the company achieved profitability during its first 100 days under new ownership. The group continues to operate in markets including India, Malaysia, and Australia while advancing its efforts to regain consumer trust.
Yet, the fallout from the administration still lingers. The relatively low payouts to unsecured creditors, including its trusted suppliers and charities, underscore the financial ripples caused by The Body Shop’s collapse.
Source
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