The Body Shop NZ placed into voluntary administration, loyalty points now void
The Body Shop NZ was placed into voluntary administration, months after its UK parent did the same. Photo / Getty
Cosmetic and beauty products retailer Body Shop NZ has been placed in voluntary administration, months after its UK parent did the same.
As part of its administration, the business has also revealed that purchases cannot be solely made with gift card funds, and all loyalty points have been made void.
Administrators Daniel Stoneman and Neale Jackson of financial advisory firm Calibre Partners have been appointed and said all retail stores would stay open at this stage.
“The Body Shop NZ’s UK parent company was placed into administration in February 2024. Following this, the assets of The Body Shop International were largely sold by the administrators in September 2024. This sale excluded The Body Shop NZ business,” Stoneman and Jackson said.
“A buyer for the business has not been found, leading to the appointment of administrators. We are working closely with the management team to develop a strategy to sell all stock and begin to wind down the business.”
The business has 16 stores across New Zealand in all the major centres and about 70 permanent employees.
The winding down process may have already begun, as the business’ retail store at Northwest Mall in Auckland closed before Christmas last year.
As of writing, the store’s New Zealand website is still operational, but the Australian and international sites are temporarily locked.
A new message has been published on the website, however, acknowledging the business is now in a clearance sale, with all items at significantly discounted prices.
The business has also made changes to its terms, specifically regarding gift cards and its LYBC loyalty programme.
“Gift cards can be redeemed to the extent they are matched with actual money and can only be redeemed in-store. You cannot make a purchase solely using gift card funds. For example, if you wish to redeem $20 in gift card funds, you must spend an additional $20 in actual money.”
“The LYBC programme is no longer operating and you are unable to redeem any existing points online or in-store.”
UK revival
The Body Shop’s parent in the UK faced its own issues early last year.
The UK business was bought in November 2023 by German company Aurelius for £207 million (NZ$424m), but was subsequently placed into administration in February 2024 after it failed to revive the business.
However, after being sold to a new owner in September 2024, the business has reported a bounce back.
According to the Guardian UK, the business was acquired by a consortium led by British cosmetics tycoon Mike Jatania and his venture capital firm Aurea Group.
That deal included Body Shop International’s assets, which included its UK stores and control of outposts in Australia and North America for an undisclosed sum, but didn’t include the New Zealand business.
Since Aurea Group took ownership, it has achieved £2m in profit on £28m of sales in the first three months.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.