The Body Shop’s German arm falls into administration | Retail industry

The Body Shop’s European businesses have begun shutting down, with the German stores put into administration and its Belgian staff told they will be next, placing more than 460 jobs at risk across the two countries.

The closures come after Aurelius, the German restructuring specialist that bought The Body Shop last year, put the ethical beauty chain’s main UK business into administration this week.

Most of the European operations were sold last month to a buyer whose identity has not been initially disclosed by Aurelius. Staff were told the buyer was a “family office” – a term that typically refers to the management of personal wealth.

It is understood the counterparty is Alma24, a company controlled by Friedrich Trautwein, an executive who has close links to Aurelius. Alma24 is also understood to have taken control of The Body Shop in Japan.

Staff said they had been told that all 60-plus stores and the head office in Germany, where the business employs almost 400 people, were likely to close. An insolvency specialist, Dr Biner Bähr at the law firm White & Case, has been appointed to handle the German business.

Workers in Belgium, where the chain has about 16 stores and 50 employees, are also understood to have been told on Friday morning that administrators were set to be appointed.

One source said: “The actions being taken may not be wrong but it is how it is being done that is breaking people’s hearts. People are being told with no notice: ‘You work for an unnamed family company,’ when some of these people have been with the company for years, some 30 years. It is so painful.”

Sources said The Body Shop’s operations in Ireland, Austria and Luxembourg, which together have about 20 stores and more than 100 staff, were also expected to be put into administration shortly. The Austrian and French websites were not operating on Friday.

It is understood that the status of a number of countries, including France, Spain and Sweden, is unclear as the directors in those countries have not signed documents finalising transfer of ownership.

One well-placed source said: “We don’t understand today who is the owner and who is responsible for people.”

Aurelius, a German restructuring specialist, is the main creditor to the UK arm of The Body Shop and so is expected to buy back a downsized version of the business – with as few as 100 stores – from administrators.

The group’s operations in the US and Australia, which have been successful, are expected to remain open.

Alma24 has been contacted for comment.