Closure follows 'dramatic surge in business failures throughout 2024'
Around 70 jobs have been lost at The Body Shop as the cosmetics firm announced the closure of all its retail locations, according to reports.
The beauty brand, which has 16 outlets in New Zealand, announced the store closures on its website.
"All retail locations are now permanently closed, and our online store is no longer processing orders," it said in a statement. "We extend our heartfelt gratitude to our valued customers for your unwavering support throughout the years. Your passion for our products and ethical values has meant everything to us."
As of 22 January, Daniel Stoneman and Neale Jackson of Calibre Partners have been appointed as Joint and Several Voluntary Administrators of The Body Shop NZ.
Last year, The Body Shop's UK business also entered administration, putting at risk around 2,000 jobs.
It was saved, however, in September after Aurea Group bought its 113 stores in the UK, as well as gained control of its Australian and North American assets, Radio New Zealand reported.
The Body Shop's administration comes in the heels of a "dramatic surge in business failures throughout 2024," according to the BWA Insolvency.
Its quarterly market report for Q4 2024 revealed that annual insolvency figures have reached a nine-year high.
Liquidations hit 2,545 cases in 2024, according to the report. Receiverships and voluntary administrations (VAs) also saw increases, recording 195 and 72 cases, respectively.
The report attributed the situation to many businesses failing to recover from pandemic-altered spending habits, such as the shift to online shopping.
"Combined with recession fears and higher interest rates, 2024 proved that determination alone cannot guarantee business survival in challenging market conditions," the report read.
