Administrators of The Body Shop will launch an auction of the chain after concluding that an alternative restructuring of one of Britain’s best-known high street retailers was not viable.
Sky News has learned that FRP Advisory, which has overseen the failed business since January, will begin formally sounding out potential buyers in the coming weeks.
The move raises the possibility of new owners taking control of The Body Shop, founded almost half a century ago.
The chain now sells in around 100 stores, following a program of store closures and layoffs carried out in recent months.
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Next expressed interest in a deal early in the insolvency process, while Aurelius, the investment firm that took control just weeks before the administrators’ call, is also among the potential bidders.
In a statement issued to Sky News, an FRP spokesperson said that after engaging with stakeholders about a company voluntary arrangement (CVA), it was “unable to reach the necessary agreements to launch a CVA”.
“The joint administrators have therefore decided to commence a process of selling TBSI’s underlying business and assets [The Body Shop International].
FRP added that it was “encouraged by the level of interest received to date from interested parties”.
“The Body Shop continues to be an iconic brand and, following the structural changes we have made to the business since our appointment, we believe it has a viable future.
The late Dame Anita Roddick, founder of The Body Shop, is shown after receiving her honor in 2003. Photo: Reuters
“This will be presented to potential acquirers during the sale process.”
Sources suggested that FRP hoped to close the sale of the business during the summer.
The insolvency practitioner informed creditors of the potential auction in a progress report published several weeks ago.
“In the event that a CVA cannot be agreed, the joint administrators will proceed with the sale of the business and assets,” FRP said in March.
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The Body Shop’s collapse into administration in February highlighted the decline of a stalwart company founded by the late Dame Anita Roddick and her husband Gordon almost half a century ago.
Aurelius bought the network from Natura & Co, a Brazilian company that reportedly paid more than US$1 billion to buy it in 2017.
According to the administrators’ report, Aurélio was confronted shortly after taking ownership of the network with a “short-term cash position [which] was adverse to expectations, motivated by the poor results of the 2023 financial year and the liquidation of the company’s working capital”.
“Prior to the sale to Aurelius Group, stock levels were depleted during the peak Christmas trading period.”
It is understood that Aurélio continued to finance the business during the administration process.
The Body Shop’s business in most of Europe and parts of Asia had already been transferred to a family office before the insolvency of the UK branch.
At the time of the sale to Aurelius, The Body Shop employed around 10,000 people and operated around 3,000 stores in 70 countries.
Although it has struggled for profitable growth for years, it has maintained a prominent presence on Britain’s high streets.
The Roddicks were prominent advocates of environmental causes, a stance that helped them gain an edge over rival retailers during the 1980s and 1990s.
Its opposition to animal testing of cosmetics was also unusual in the decades immediately after its founding.
Its distinction has, however, been diminished in recent years by the emergence of competitors who also place sustainability at the heart of their business.
The Body Shop was owned by cosmetics giant L’Oreal before its sale to Natura.
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