The Body Shop is set to make a comeback after going into liquidation earlier this year. Photo/ NZPA, Ross Setford
Ethical beauty retailer The Body Shop New Zealand is set to rise from the ashes with the rights to the brand being snapped up by a local company.
The Body Shop went into voluntary administration in January, months after its UK parent had done the same because of financial challenges and a difficult UK trading environment.
Then in April, the business was placed into liquidation, with liquidators Daniel Stoneman and Neale Jackson of Calibre Partners forced to close 16 stores across New Zealand, causing the loss of roughly 70 jobs.
The previous owners owe more than $12 million to creditors, with more than half owed in inter-company loans.
But now the business is coming back with a locally owned franchise named Version3 Limited rebuilding the brand from scratch.
The Body Shop NZ’s general manager Khan Wyman and his wife Pamela Bonira said they were proud to bring back the brand, but wanted to correct the record as to what had happened.
“The story that was out there that the general public had was that there were far larger problems than what was the truth,” Wyman said.
“It wasn’t a product issue or a fashionability issue or popularity or anything like that. It was more of a post-Covid restructure or reorganisation-type effort from the parent company. We just saw it as a massive opportunity.”
Wyman said the parent owners were not able to find a buyer for the business and they were working with several people, including Wyman, to find a solution.
However, due to timing constraints and the priorities of the liquidators who were dealing with creditors and debts from the previous owners, a sale wasn’t able to be made before the stores were shut down.
While disappointing for the new owners, it meant a clean slate for them to rebuild from.
“Obviously we love the brand and we saw it as a massive opportunity when they reached out and were like, ‘Hey are you interested in taking this forward?’. We just latched on to it with both hands,” Wyman said.
Version3 Limited has bought the rights to the business outright in New Zealand and has been working with the UK parent company to relaunch it, with no stores or stock to build off.
The business has a franchise agreement with the parent company, and while Wyman said the agreement certainly isn’t make-or-break, there are commercial targets for them to hit.
Wyman confirmed the first store would open in Nelson’s Richmond Mall by mid-November, with construction set to be finished in a week’s time.
“I spent half my time in business socks and steel toes, so it’s a strange dichotomy. The new look of the shop is the first-ever in New Zealand. It’s called the workshop and we’ve never had that style of store before.
“If you go to The Body Shop UK, they just launched in Oxford Street a similar look, but it’s the first in New Zealand. We’re pretty excited for that.”
Wyman and Bonira described the store as one that allows customers to interact with the product in a more hands-on experience.
The new owners have also rebuilt a new website and e-commerce platform for the business from scratch, which has already launched.
With the first store set to open shortly, Wyman and Bonira already have their eyes set on potential new locations in the years ahead, including Auckland and Christchurch.
“Christchurch traditionally has a good customer base there and they’re really passionate about the brand, so that would probably be an easy first step, and Auckland is in everyone’s cross-hairs.”
Wyman said the brand’s revival could also see previous staff return to the store, noting their serious passion for the brand and its ethos.
As for what comes next, Wyman’s message to Kiwis was simple.
“We would love to see them back. People are really interested in the local relaunch or phoenix story, but also the products speak to themselves. We also really hope that people will resonate with the local ownership.
“With the new owners in the UK, there’s been an injection of positivity and research and development and we can’t spill any secrets, but there’s some really exciting things coming.”
Founded in 1976 by Dame Anita Roddick in England, The Body Shop will celebrate its 50th anniversary next year.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.