The Body Shop’s administrators are investigating claims of millions of unaccounted funds that were taken out of the business before its collapse, The Telegraph has reported.
FRP Advisory is in the early stages of investigating claims of millions being taken out from the company before it collapsed. The unaccounted funds pre-date The Body Shop’s sale to private equity group Aurelius.
The ethical beauty chain’s UK arm saw £19m of profits on sales of £163m during the run-up to its collapse, figures seen by The Telegraph showed.
The 2023 figures are for the chain’s 198 UK stores and do not cover costs from its global operations.
When The Body Shop fell into administration, FRP Advisory said the firm had made a £60m loss in 2022 including its overseas operation.
The news comes after The Sunday Times reported that administrators were shutting some UK stores despite them being profitable.
Internal documents seen by the newspaper revealed only eight of the retailer’s 206 stores in the UK were loss-making last year. However, FRP Advisory last month shut seven stores with immediate effect and named 75 that will close in four to six weeks.
The retailer had previously said its other global operations were excluded from the administration process, however, its Canadian arm plans to shut a third of its stores and halt ecommerce operations after it filed for bankruptcy.
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