News

Director Tom Davey comments on The Body Shop’s administration in City A.M.

Director Tom Davey comments on the news that The Body Shop is set to shut 75 stores and cut almost 500 jobs after it collapsed into administration, and explores the strong economic headwinds impacting the UK high street.

Tom’s comments were published in City A.M., 29 February 2024, and can be found here.

“Another casualty in the recent crop of high-street businesses entering administration, the collapse of The Body Shop reflects the uphill battle many UK retailers are facing in keeping their doors open.

“It is clear that the situation at The Body Shop is far worse than initially feared – and the pressure is clearly building on the embattled retailer as it looks to hastily restructure its operations.

“With insolvency practitioners stating that staff at the business’ London headquarters could be slashed by 40%, the situation appears critical for both the company and its employees as it strikes a delicate balancing act in the number of stores and staff it retains.

“With rising prices and interest rates, coupled with continued supply issues, UK consumers’ spending power has been hit hard over the past few years. Many retailers are finding these conditions impossible to weather in their current guise and, in the face of insurmountable costs for many businesses, we are only likely to see a continued rise in insolvency rates over the coming months.”