The new owner of The Body Shop, a private equity firm, plans to bring in an administrator to handle the insolvency process for the UK business, which has around 200 stores, according to reports.
The Body Shop’s new owners plan to bring in administrators to run the beauty chain’s stores and make staff cuts, it is claimed.
The high street giant, founded in 1976 by Anita Roddick and her husband Gordon and with a small shop in Brighton, was formally acquired by private equity firm Aurelius on January 1, in a deal worth 200 million yen. It was said to be 7 million pounds.
However, just weeks after taking control, it emerged that the company was preparing to appoint FRP Advisory to handle the insolvency process for its UK business, which trades around 200 stores. It’s not clear how likely closures or job cuts are, but the report says administrators are likely to consider significant cuts. The company has struggled under successive corporate owners.
Aurelius, which owns other popular brands such as Footasylum, fended off competition from rival bidders including Alteri Investors, private equity firm Epiris and Elliott Advisors, owner of Waterstones bookstore. However, the company quickly concluded that it lacked working capital, according to reports. It has since shut down the retailer’s home division.
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At the time of acquisition, The Body Shop had approximately 10,000 staff and operated approximately 3,000 stores in 70 countries. Sources told Sky News the administration process will not affect the brand’s global franchise partners.
This comes after the retailer’s operations across much of Europe and parts of Asia were sold to an unnamed family office in recent days. Ltd. told RetailWeek last month that the deal “explores opportunities to further prioritize and build on The Body Shop’s strategically important markets and relationships with global head franchise partners.”
“The Body Shop is also focused on reaching customers more effectively through enhanced digital platforms, development of new sales channels and differentiated retail experiences,” it added. “The announced sale is another decisive step in realizing The Body Shop’s strong turnaround strategy, supported by the right structure. Our goal is to be relevant to our customers and able to compete in the long term. To create a modern and dynamic beauty brand.”
The newspaper reported yesterday that group legal counsel for former owner Natura had contacted Mr Aurelius to find out why former employees had not received long-term incentives that were scheduled as part of their severance packages.
Natura announced early last year that it was considering selling its skin care and cosmetics business, citing declining sales, before announcing the sale in November. In a filing published in August 2023, the company said it had authorized bosses to consider “strategic alternatives” for the retailer. Following the acquisition in November, Aurelius said it will work with management to drive “operational excellence” across the Body Shop brand. He also said it will “leverage our expertise and experience in omnichannel retail and wholesale markets.”
Tristan Nagler, partner at Aurelius, said in a statement: “We are delighted to undertake the acquisition of this iconic British brand that has pioneered the cruelty-free and natural ingredients movement in the health and beauty market. We look forward to working with the CEO. I’m looking forward to it.” Ian Bickley and his team can help you drive operational improvement, reinvigorate your business and deliver the next chapter of success. ”
Mr Aurelius declined to comment when contacted by the Mirror. He also contacted The Body Shop.