The Body Shop back in profit under new leadership
The Body Shop, the iconic cosmetics and skincare retailer founded by Dame Anita Roddick, has reportedly returned to profitability just three months after being rescued from administration.
CEO Charles Denton shared the news with employees in a Christmas message, declaring: “We’re back for good and, last month, back in profit, baby!” Denton revealed that the retailer made a £2 million profit during its first 100 days under the new ownership of an investor consortium led by British tycoon Mike Jatania’s Aurea Group. During the same period, The Body Shop generated £28 million in sales, ending the year 17% ahead of internal forecasts.
Earlier this year, The Body Shop faced financial turmoil under its previous owners, filing a notice of intent to appoint administrators in February. At the time, the company owed creditors over £276 million and had experienced weaker-than-expected sales during the 2022 festive season and early 2023.
The retailer’s collapse led to the closure of 85 stores in the UK, cutting 489 jobs. Globally, the company significantly downsized its operations, leaving 113 UK stores and a leaner international presence.
Denton acknowledged the tough journey in his message to staff, saying: “Storm Darragh may have tried its worst, but we weathered it and some.”
New leadership and strategic moves
The Body Shop’s turnaround comes after its acquisition by Aurea Group in September. The new owners have focused on streamlining the business, including relocating its head office to Brighton, consolidating functions that were previously spread across London and West Sussex.
Despite the positive results, some sources caution against overinterpreting the return to profitability, noting that revenues may have been boosted by clearing stock and offering significant discounts.
The Body Shop, which began as a small Brighton shop in 1976, has faced challenges before but remains a high street icon with a reputation for ethical and sustainable practices. Denton’s optimism reflects the company’s commitment to bouncing back stronger: “Throw whatever you like at us, and we’ll come bouncing back.”
As the retailer moves into the new year, its focus will likely be on building on this early momentum while continuing to adapt to a smaller but more focused business model.
