FRP Advisory is managing the sales process for The Body Shop, with Marks & Spencer and Next understood to be the most likely buyers of what remains of the business post its Aurelius experience. Aurelius acquired The Body Shop International late last year, making a down payment of just £3.5m to owner Natura. Aurelius then cynically hived off The Body Shop brand and IP assets into a separate business.
As administrator FRP, appointed in February, FRP had reduced the UK store count to 116 and made 800 staff redundant with the intention of mounting a CVA process to enable Aurelius to retain the business. Natura has scuppered this move.
It is believed that Aurelius’s actions in this matter may well spark a government lobby to amend the laws surrounding business acquisitions to prevent asset stripping and abuses of the CVA process, which many say are very long overdue. Now that the election has been called, any progress on this will, no doubt, be subject to a lengthy delay.
Come what may, The Body Shop needs a new owner who will nurture the brand – understood to be available in a separate transaction to the buyer found by FRP – as well as take on most, if not all, of the remaining employees. Whether the standalone stores can remain open or will be ‘replaced’ by concession style space within the buyer’s existing retail stores is open to conjecture.
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