From Ethical Beauty Icon to Bankruptcy

In the bustling world of cosmetics, The Body Shop stood as an icon of ethical beauty, founded in 1976 by the indomitable Anita Roddick with just $5,000. From its humble beginnings in Brighton, UK, it became a global phenomenon, valued at $102 million by 1992, ahead of its time in advocating environmental and social causes.

But as the years passed, the winds of change swept through The Body Shop. In 2006, Roddick sold his beloved brand to cosmetics giant L’Oréal for $1 billion, sparking an outcry among loyal customers who felt betrayed by the marriage of ethics and commerce.

The Body Shop’s fortunes began to deteriorate. Its once staunch supporters turned away from the brand, disenchanted with its values ​​and its corporate parent. By 2017, L’Oréal dumped the struggling brand and handed it over to Brazil’s Natura in another billion-dollar deal.

However, Natura’s acquisition failed to stop the rot. In 2023, amid rapid depreciation and poor performance, Natura sold The Body Shop to Aurelius for a fraction of its former glory, i.e. $266 million. In just seven years, this once-proud icon changed hands three times, a poignant symbol of its fall from grace.

There were many reasons for The Body Shop’s demise. Increasing competition in the cosmetics industry, once dominated by The Body Shop’s ethical ethos, now filled with brands boasting superior branding and marketing strategies, has eroded its market share. The rise of online shopping further exacerbated its struggles, making its vast network of 2,500 brick-and-mortar stores at its peak increasingly untenable.