The Body Shop, a well-known global health and beauty brand, operated across a mix of directly owned and franchised international markets. Over time, the business structure became increasingly complex, leading to rising costs and inefficiencies. This was further impacted by leadership changes and a lack of central control. With profitability heavily dependent on strong Q4 performance, the company faced ongoing losses during the rest of the year. Following its sale to a private equity firm in late 2023, it became clear in early 2024 that the funding required to support a turnaround was higher than expected - and unavailable. Complex international footprint with mounting pressures
Stabilising under pressure and extending the runway
Finding a sustainable future for an iconic brand
FRP was engaged on an accelerated timeline to evaluate strategic options for the group. To safeguard the business, The Body Shop was placed into administration. In exceptionally challenging conditions, FRP stabilised operations, working closely with over 300 key suppliers. Immediate cost reductions were actioned across rent, staffing, and IT, while the team traded the business for eight months to preserve value and extend the cash runway. Proactive negotiations with major suppliers helped secure stock and manage a complex international supply chain, buying vital time for a longer-term restructuring solution.
With operations stabilised, FRP explored a Company Voluntary Arrangement (CVA) to return the business to its shareholder. However, this route fell through due to the shareholder’s inability to reach agreements with essential stakeholders. As a result, FRP launched an accelerated sales process within administration, attracting significant global interest. After an intensive period of due diligence, a successful sale was completed in September 2024. FRP’s intervention preserved the future of one of the UK’s most iconic high street brands, ensuring business continuity and safeguarding jobs across its international network.
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