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The Body Shop's UK business has entered administration, potentially putting up to 2,000 jobs at risk.
The retailer's shops will remain open as usual while the administrators try to save the UK firm.
Restructuring firm FRP, which has been appointed as the administrator, said it would now consider all options to find a way forward for the business.
The Body Shop was started by the late Dame Anita Roddick in 1976 from a single shop in Brighton.
It grew into a global brand, pioneering ethical trading and a stance against testing beauty products on animals.
FRP said creating "a more nimble and financially stable UK business" was an important step in it becoming a modern beauty brand "relevant to customers and able to compete for the long term".
The administrators are expected to try to substantially cut costs, including on property and rents which could lead to job cuts.
It is highly unlikely that The Body Shop name will completely disappear from Britain's High Streets after nearly 50 years.
The retailer's British business has more than 200 shops and a handful of franchises across the UK as well as its headquarters in London.
Aurelius, the private equity firm that bought the brand for £207m in November, took the drastic decision to place it into administration after poor sales during the key Christmas trading period.
There are hopes it will be restructured to better compete with brands such as Lush, best-known for its bath bombs and face masks, which is popular with younger shoppers.
The Body Shop has now changed hands three times since it was sold by founder Dame Anita in 2006, shortly before her death the following year.