The Body Shop is going into administration because hundreds of stores and jobs are at risk

How does the administration work?

The administrator will write to your creditors and Companies House to let them know that they have been appointed.

They will try to prevent the company from being liquidated, but if that fails, the liquidator will pay as much of the company's debts as possible from its assets.

The administrator has eight weeks to write a statement explaining what he plans to do.

This should be sent to creditors, employees and Companies House inviting them to approve or amend the plans at a meeting.

The Body Shop's recent deal

The Body Shop was bought by private equity firm Aurelius from former owner Natura and Co in November in a deal worth £207m.

The cosmetics group said it wanted to shift its focus from the UK market to South America.

New owners Aurelius, a private equity group that also owns Lloyds Pharmacy and Footasylum, also confirmed that it sold the majority of The Body Shop's operations in mainland Europe and parts of Asia last month.

Will stores continue to trade?

The Body Shop will continue to trade, with stores and the online site remaining open and generating sales.

Administrators FRP said the move to place the retailer into administration “provides the stability, flexibility and security to find the best way to secure the future of the chain”.