U.K. retail giants Marks & Spencer and Next have expressed early interest in acquiring the vegan beauty chain The Body Shop, as administrators prepare to launch an auction. FRP Advisory announced last week that The Body Shop would be put up for sale for the second time within a year, following the collapse of initial restructuring plans.
The Body Shop’s administrators decided to auction the chain after determining that alternative restructuring options were unviable, despite recent measures including store closures and redundancies that reduced its U.K. presence from 198 to around 100 stores. This development has led senior U.K. politicians to call for an inquiry into the retailer’s decline and the significant job losses that ensued, despite the profitability of its British operations.
Earlier this year, The Body Shop fell into administration in the U.S. and Canada, resulting in the cessation of its operations in these regions. Private equity firm Aurelius, which placed The Body Shop into administration mere months after acquiring it late last year, is also reportedly preparing a bid to regain ownership of the business. FRP Advisory has received expressions of interest from over 70 potential bidders, though many are expected to be disqualified as unsuitable buyers. The sale is anticipated to be finalized by summer.
The Body Shop, renowned for its visionary late founder Anita Roddick, has faced significant challenges over the past year. Brazilian beauty conglomerate Natura & Co sold the high street chain to Aurelius for $260 million, but it was later revealed that Aurelius paid only $4.5 million upfront, with the remaining amount tied to performance-based payments that are now unlikely due to the chain’s administration. This situation raises questions about the extent of compensation Natura & Co can expect beyond the initial payment.
The current turmoil at The Body Shop highlights the volatility of the retail beauty market and the complexities involved in corporate acquisitions and restructuring. Marks & Spencer and Next’s interest indicates potential lifelines for the brand, known for its ethical principles and innovative heritage. As the auction progresses, the future of The Body Shop remains uncertain, but its outcome will undoubtedly influence its trajectory in the evolving beauty retail landscape.
