Administrators of The Body Shop are working towards selling the struggling cosmetics retailer by the end of the month. The former owner of the chain has reportedly decided against making an offer for it.
According to sources, FRP Advisory, the firm appointed to handle the retailer’s insolvency in January, has requested indicative bids by next Tuesday. The company intends to finalize a sale of The Body Shop’s remaining British business before the end of June.
Aurelius, the investment firm that took control of the retailer shortly before administrators were called in, is not expected to submit an offer next week. Marks & Spencer, previously rumored as a potential bidder by The Sunday Times, has also declined to make an offer. Additionally, there are doubts that rival Next will bid.
However, sources close to FRP have stated that they are encouraged by the level of interest in The Body Shop from potential buyers. The auction was initiated last month after the administrators determined that an alternative restructuring of the well-known high street retailer was not feasible.
The Body Shop currently operates approximately 100 stores following a recent closure and redundancy program. Its collapse into administration highlights the decline of a once-prominent high street brand founded by the late Dame Anita Roddick and her husband Gordon nearly fifty years ago.
Aurelius acquired the chain from Natura & Co, a Brazilian company that reportedly paid over $1 billion for it in 2017. According to the administrators’ report, Aurelius faced a challenging “short-term cash position” upon taking ownership at the beginning of the year, due to poor financial performance and the unwinding of the company’s working capital in the previous fiscal year.
Prior to its sale to Aurelius, The Body Shop experienced depleted stock levels during the crucial Christmas trading period. During the administration process, Aurelius reportedly continued to finance the business.
The Body Shop’s operations in most of Europe and parts of Asia had already been sold to a family office before the insolvency of the UK arm. At the time of the sale to Aurelius, The Body Shop employed approximately 10,000 people and operated roughly 3,000 stores in 70 countries. Despite struggling to achieve profitability in recent years, the retailer has maintained a significant presence on British high streets.
Founded by the Roddicks, who were prominent advocates for environmental causes, The Body Shop was known for its commitment to sustainability. It also stood out for its opposition to animal testing of cosmetics during the 1980s and ’90s. However, in recent years, other retailers have emerged with similar values, diminishing The Body Shop’s uniqueness.
FRP, Marks & Spencer, and Aurelius declined to comment on the matter.