Michelle ThompsonBelgian arm will be forced into insolvency, putting more than 460 employment at risk in both nations.
The Body Shop’s European companies have begun to close, with the German stores going into administration and the Belgian staff being told they would be next, putting more than 460 jobs at danger in both countries.
The closures come after Aurelius, the German restructuring firm that purchased The Body Shop last year, placed the ethical cosmetics chain’s main UK operation into administration this week.
Aurelius sold the majority of its European operations last month to an unidentified buyer. Staff were informed that the buyer was a “family office,” a term that usually relates to the management of personal assets.
It is believed that the counterparty is Alma24, a corporation owned by Friedrich Trautwein, an executive with intimate ties to Aurelius. Alma24 is also believed to have acquired control of The Body Shop in Japan.
Employees said they had been told that all 60-plus locations, as well as the company’s headquarters in Germany, where over 400 people work, would likely close. The German business will be handled by an insolvency specialist, Dr Biner Bähr of the legal firm White & Case.
Workers in Belgium, where the chain has approximately 16 stores and 50 workers, were similarly informed on Friday morning that administrators were to be appointed.
One insider stated, “The measures taken may not be wrong, but how they are carried out is tearing people’s hearts. People are being told abruptly, ‘You work for an anonymous family corporation,’ despite the fact that some of these employees have been with the organization for years, if not decades. “It is extremely painful.”
According to sources, The Body Shop’s operations in Ireland, Austria, and Luxembourg, which have approximately 20 stores and more than 100 employees, are also expected to go into administration shortly. The Austrian and French websites were not operational on Friday.
It is understood that the situation of a number of nations, including France, Spain, and Sweden, is unclear because their directors have not signed documents finalizing the transfer of ownership.
According to one well-placed insider, “We don’t understand today who is the owner and who is responsible for people.”
Aurelius, a German restructuring firm, is the primary creditor to The Body Shop’s UK subsidiary and is anticipated to take back a shrunken version of the business from administrators, which might include as few as 100 outlets.
The group’s strong activities in the United States and Australia are expected to continue.
