The Body Shop has hired administrators, putting thousands of jobs at the cosmetics chain at risk.
The retailer, which operates more than 200 stores across the UK, has appointed insolvency experts from FRP Advisory to oversee the process.
FRP said administrators will “consider all options to find a way forward for the business” after years of financial difficulties and amid a challenging backdrop for buyers.
The chain will continue to trade through stores and online during the administration process.
The administrators stressed that the process will only affect its UK business, and international franchises will not be affected.
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FRP said: “The Body Shop continues to be guided by its ambition to be a modern and dynamic beauty brand, relevant to customers and able to compete for the long term.
“Creating a more agile and financially stable British business is an important step towards achieving this.
“The Body Shop has faced a long period of financial challenges under previous owners, coinciding with a difficult trading environment for the wider retail sector.”
The retailer was founded in 1976 by Anita Roddick and her husband Gordon as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.
It comes just weeks after new owners, European private equity firm Aurelius, took control of the business.
Aurelius, which specializes in buying and turning around troubled companies, secured a £207m deal in November to buy The Body Shop from Brazilian cosmetics giant Natura & Co.
It only officially took control of operations on January 1.
At the time of the acquisition, the company employed approximately 10,000 people worldwide.
Aurelius reached an agreement late last month to sell the company's operations in most of continental Europe and parts of Asia to an international family office in a “decisive step towards delivering a strong turnaround strategy” in The Body Shop.
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In November last year, private equity buyer Aurelius said it would have the opportunity to “re-energize” the retailer.
“We are delighted to undertake this acquisition of an iconic British brand, which pioneered the natural and cruelty-free ingredients movement in the health and beauty market,” said Tristan Nagler, Partner at Aurelius.
