The Body Shop’s Suppliers Face Major Losses Amid Financial Woes

The Body Shop’s Financial Collapse Leaves Suppliers with a Fraction of What They’re Owed

More than 80 British stores were closed after Aurelius put the Body Shop’s UK arm into administration in February 2024. (Shutterstock)

Things aren’t looking great for The Body Shop suppliers. According to BOF, after the beloved ethical beauty retailer went into administration earlier this year, its suppliers are now facing a tough reality: they’ll only get around 25% of the £219 million ($284 million) they’re owed. That’s a massive financial hit for the businesses that provided ingredients, packaging, and other essentials to keep The Body Shop running.

So, what happened? It all started when The Body Shop’s UK arm collapsed into administration in February 2024, leading to the closure of over 80 British stores. The situation has been chaotic ever since, leaving suppliers, employees, and customers wondering what the future holds.

The company, originally founded by Anita Roddick in 1976 and once a trailblazer in ethical beauty, has faced financial struggles for years. In 2017, it was sold by L’Oréal to Brazilian cosmetics giant Natura. Then, in 2023, private equity firm Aurelius bought it from Natura, but the transition didn’t go smoothly. Within months, The Body Shop’s UK division was in financial trouble, resulting in drastic store closures and supplier debts piling up.

Now, with suppliers only set to recover a fraction of what they’re owed, the impact could ripple across the beauty industry. Many smaller businesses rely on these payments to stay afloat, and this shortfall could mean layoffs, supply chain disruptions, and even some companies shutting down.

Meanwhile, Natura is reportedly considering selling The Body Shop altogether, which could mean more shakeups ahead. While the brand still has a strong legacy and global presence, its future remains uncertain.

For now, it’s a waiting game. Will a buyer step in to save The Body Shop? Can suppliers recover from this financial blow? Only time will tell, but one thing’s clear—this is a tough chapter for everyone involved.