The Body Shop New Zealand has entered voluntary administration, with its administrators announcing plans to sell all remaining stock and close the company’s 16 stores across the country.
The decision, revealed on Wednesday, comes after years of financial struggles for its UK-based parent company and an unsuccessful search for a buyer for the New Zealand operations.
A Tough End for an Iconic Brand
The Body Shop’s New Zealand business, which began in 1989 with its first store on Lambton Quay in Wellington, has been a cornerstone of ethical beauty retailing in the country for over 36 years. However, the company now plans to wind down its operations, as administrators work on liquidating its inventory.
The voluntary administrators, Daniel Stoneman and Neale Jackson of Calibre Partners, explained the situation:
“We are working closely with the management team to develop a strategy to sell all stock and begin to wind down the business.”
This closure follows a turbulent year for the brand’s UK parent company, which was placed into administration in February 2024 with debts of over NZ$600 million.
In September 2024, a sale of its international assets to investment firm Aurea Group excluded the New Zealand business, leaving it vulnerable.
Impact on Employees and Customers
The closure will affect approximately 70 permanent staff employed at The Body Shop’s stores in Auckland, Tauranga, Hamilton, Napier, Palmerston North, Wellington, Nelson, Christchurch, and its online business.
Customers have also been directly impacted, with loyalty points voided and gift card usage now restricted. Gift cards can only be redeemed in-store, provided customers match their value with equivalent spending. For example, a $20 gift card can only be used with an additional $20 purchase.
In an email to customers, The Body Shop expressed its gratitude and sadness about the closure:
“We regret to inform you that after much consideration, our New Zealand business has entered voluntary administration and will be closing its doors. We want to express our sincere gratitude for your loyal support throughout the years.”
A storewide 40% discount has been introduced to help clear stock, and administrators noted that stores would remain open for now in “sale mode.”
A Global Perspective
While The Body Shop New Zealand faces closure, its UK parent company was rescued in September 2024 by Aurea Group. This deal secured 113 stores in the UK, as well as assets in Australia and North America. Unfortunately, the New Zealand arm was not included in this sale, which led to the current financial difficulties.
Founded in 1976 by Dame Anita Roddick, The Body Shop gained global recognition for its commitment to ethical and sustainable beauty products.
The New Zealand business operated 28 stores across the country, representing a strong local presence for the brand when it was still at its peak.
What’s Next?
The administrators will oversee the winding down of operations while stores remain open temporarily. Customers are encouraged to take advantage of the closing sale before all 16 locations shut their doors for good.
The closure of The Body Shop New Zealand marks the end of an era, as the ethical beauty retailer’s 36-year legacy in the country comes to an untimely conclusion.