The Body Shop's UK business is set to appoint administrators this week, as reported by the BBC.
The brand was bought by private equity firm Aurelius just weeks ago.
It is understood that trading over the key Christmas period and into January was not as strong as hoped.
The impact on the Australian business, which has over 60 stores, is not yet known, but a spokesperson for the local business told news.com.au, "Media reports are just speculation, and we are trading as usual."
The Body Shop was founded with an ethical trading ethos by Anita and Gordon Roddick in the UK in 1976, and has more than 200 stores in the UK.
It operates more than 900 stores in 20 countries, with a further 1,600 franchised stores in an additional 69 countries, and a total of around 22,000 employees worldwide.
BD will continue to update you on the news as it develops.
