Fair Trade Suppliers Face Uncertainty as The Body Shop Enters Administration

Fair Trade Suppliers Face Uncertainty as The Body Shop Enters Administration

THE WHAT?   The Body Shop’s fair trade suppliers, working with communities from the Amazon to Africa, are left with over US$1 million in potentially unpaid and unordered beauty ingredients due to the company’s UK arm entering administration.

THE DETAILS These suppliers, part of 18 global community fair trade partnerships, some over 20 years old, face significant financial losses, impactful for families in low-income, remote areas. The Body Shop continues to trade under administration, but supplier debts are uncertain and may be prioritized. 

THE WHY? The recent acquisition by Aurelius and the insolvency of The Body Shop’s German division add to the uncertainty, affecting the entire supply chain, including intermediaries and manufacturers, with concerns about the future payments for orders, such as a €300,000 order from Brazilian cooperative CoppalJ.

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