The Body Shop administrators are investigating allegations of missing millions

The Body Shop's administrators are investigating claims that millions of pounds were siphoned out of the business before it collapsed, The Telegraph can

FRP, which took over the UK unit last month after it went into administration, is currently reviewing claims about unaccounted funds created before the sale of the business to private equity group Aurelius. The investigation is still in its early stages.

Senior MPs are now calling for a deeper review of The Body Shop's collapse amid massive job cuts and store closures.

Scrutiny of the circumstances surrounding the collapse of the business will be heightened by data from The Telegraph showing that the company's UK retail division reported a profit of £19 million on revenue of £163 million before the collapse.

The figures take into account 198 The Body properties Shop across the UK in 2023, but does not include costs for the company's global operations.

The Body Shop business, which went into administration last month, included costs for the company, administrators said. operations overseas, resulting in a total loss of £60 million in 2022.

However, the financial state of day-to-day operations is likely to raise further questions about the circumstances surrounding the running of the company.

The administration process will look at wider issues of the Body Shop collapse, including the role played by Aurelius.

A separate dispute between The Body Shop's former owners, Brazilian cosmetics giant Natura, and buyer Aurelius also erupted over payments promised to about 30 former employees.

Natura said it was «surprised and concerned» by allegations that Aurelius failed to pay the £3 million consideration it had promised as part of a £207 million sale agreement reached in November.

The Natura letter was sent last year. week and published by The Telegraph, said: «It is particularly troubling when Aurelius expressly agreed that The Body Shop would make these payments from its wages and Natura financed the costs through an agreed reduction in the purchase price of the business.»

< p>«While we continue to review this matter with Aurelius, we have decided to make all monies due to The Body Shop employees (and former employees).»

A source close to Aurelius said the payments were related. to senior employees and the administrator must treat them like any other financial liability.

Aurelius handed over control of The Body Shop's UK operations just three months after completing a £207 million deal.

Aurelius emerged was the retailer's main creditor before its insolvency and is believed to have a good chance of reclaiming The Body Shop's assets free of debt if no bidder emerges. It will not be responsible for redundancy payments.

Widespread concerns about the acquisition have drawn political attention, especially as the taxpayer prepares to foot a multimillion-dollar bill to cover the costs of redundancy.