UK giants Marks & Spencer and Next rumored to bid on The Body Shop
28 May 2024 --- Marks & Spencer and Next have made early expressions of interest in The Body Shop for a potential rescue bid ahead of administrators preparing to launch an auction.
French Rowley Partners (FRP) Advisory administrators for the vegan beauty chain announced last week that the company would be put up for sale if its plans for a company voluntary arrangement fell through.
The advisory company wrote to creditors last week to say it was “encouraged” by the early interest shown in the retailer. It has received expressions of interest from over 70 potential bidders, but it is believed many will not be considered suitable buyers. FRP expects to conclude the sale during the summer.
Next has become a prolific buyer of struggling brands, including Joules, FatFace and JoJo Maman Bébé.
Buying and selling
The Body Shop’s administrators decided to launch an auction of the chain after concluding that an alternative restructuring was not plausible.
Last year, Aurelius bought The Body Shop from Natura &Co for £207 million (US$264.4 million). Shortly after, the private equity firm placed the skin care brand into administration.
The Body Shop is expected to be sold this summer.The Telegraph later revealed that Aurelius only paid US$4.5 million upfront, with the remainder tied to US$115 million performance-related payments that the firm was set to pay over the next five years, subject to certain conditions that are now unlikely to be executed due to the chain’s administration. According to The Times, Aurelius is also preparing to table a bid to regain ownership.
Reports say the reduction of stores — 198 to approximately 100 stores — and 800 employees being made redundant in the UK prompted senior politicians in the country to call for a review of the retailer’s decline and subsequent job losses despite its profitable British arm.
The Body Shop saga
Personal Care Insights reported that taxpayers may have paid millions of pounds to staff laid off by The Body Shop after it fell into administration in the UK.
According to The Telegraph, workers for the company were told they would have to make claims through the government-backed redundancy payments service for their payoffs.
After collapsing into administration in the UK, the District Court of Central Netherlands declared the retailer bankrupt in Belgium.
In March, The Body Shop fell into administration in the US and Canada, closing approximately a third of its stores in the Great White North and ceased online sales as it sought creditor protection.
By Sabine Waldeck
