Body Shop administrators rush to close a sale | Business News

Administrators at The Body Shop aim to close the sale of the struggling cosmetics retailer by the end of the month, even if its former owner avoids making a bid for it.

Sky News understands that FRP Advisory, appointed to deal with the network’s insolvency in January, has requested indicative proposals by next Tuesday.

Sources said FRP wanted to seal the sale of The Body Shop’s remaining British business before the end of June.

Aurelius, the investment firm that took control of the retailer just weeks before administrators were called in, is not expected to submit a bid next week.

Marks & Spencer, which was named as a possible bidder by The Sunday Times, also decided not to make a bid, although there were growing doubts on Friday that rival Next would make an offer.

Sources close to FRP insisted, however, that it was encouraged by the level of interest in The Body Shop from potential bidders.

The auction was launched last month after administrators concluded that an alternative restructuring of one of Britain’s best-known high street retailers was not viable.

The Body Shop now trades in around 100 stores following a store closure and redundancy program carried out in recent months.

Its collapse into administration highlighted the decline of a robust 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 over the network at the beginning of the year 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 center of their business.

FRP, M&S and Aurelius declined to comment.