High street giant Next is reportedly considering a rescue bid for troubled beauty retailer The Body Shop.
Next has reportedly approached The Body Shop’s administrators, FRP Advisory, about the possibility of purchasing the chain’s assets as part of an upcoming sale process.
According to Sky News, NEXT has been eyeing The Body Shop for some time. In recent years, the high street group has acquired names, often outside its control, including Cath Kidston, Made.com and Joules. It has also acquired large stakes in Jojo Maman Bebe and Reese, and entered into joint venture agreements with Victoria’s Secret and Gap.
However, Sky reports that one potential hurdle to a deal with The Body Shop lies in IP and branding, which is said to not be part of the management process. Private equity firm Aurelius, which bought The Body Shop from Brazilian beauty brand group Natura & Company for £207m late last year and went into administration this month, has since funded the remainder of the business. It is believed that. As part of your protected assets, such as your IP or brand.
One possible outcome of the administration process is that Aurelius reacquires a rebuilt version of The Body Shop. FRP has already begun reorganization of The Body Shop headquarters. Approximately 200 stores (about half) in the UK will be closed. Any deal with NEXT is said to be unlikely to save many stores.
In announcing the closure last week, FRP said: “The reduction in store footprint is consistent with a renewed focus on the brand’s products, online sales channel and wholesale strategy, aligning with peers and returning to financial stability. We will support the .
The bankruptcy of The Body Shop, founded in 1976 by pioneering retailer and activist Anita Roddick, is about how the brand lost its way without a visionary founder at the helm Beauty It caused a big debate in the market. Roddick was a pioneer in sustainable, cruelty-free beauty, and while business boomed through her 1980s and 1990s, it began to lose its luster in the early 2000s, and Roddick and Her husband Gordon stepped away from running her business in 2015. It was then sold to L’Oréal for £652.3 million, which took over the business globally but largely trampled under the company’s ownership, questioning many decisions, including moving manufacturing overseas, and in 2017. It was sold to Natura & Company in 2010.
Natura was sold to Aurelius at the end of 2023 but went into administration this month after a difficult Christmas.
Important milestones in The Body Shop’s history
1976: Pioneering entrepreneur and activist Anita Roddick and husband Gordon open first branch of The Body Shop in Brighton
1984: The Body Shop listed on the London Stock Exchange
2002: The Roddixes will step back from management, but will remain non-executive and retain their shares.
2006: The Body Shop, which currently has 305 stores, will be sold to French cosmetics giant L’Oréal for £652.3 million.
2017: L’Oréal sells The Body Shop to Brazil’s Natura & Company for approximately £870m
November 2023: Natura & Co sells The Body Shop to private equity house Aurelius for £207m
February 2024: Aurelius appoints FRP Advisory as administrator, putting 200 stores at risk