In This Article:
LONDON — The Body Shop could have a new owner by the end of June after the deadline for bids set by the company’s U.K. administrators, FRP Advisory, closed earlier this week.
FRP had originally planned on a CVA, or Company Voluntary Agreement, which would have seen The Body Shop exit administration, and return to trading, with creditors paid over a fixed period.
More from WWD
-
Fashion Is Tuning Into Diversity and Inclusion, but Some Signals Remain Garbled
-
Burberry Unveils Soccer-themed Series With Phil Foden, Eberechi Eze
That plan didn’t work out, so FRP pivoted to a sale process. Potential owners have now submitted their bids for all or parts of The Body Shop International, which has 112 stores and various subsidiaries worldwide.
The names of the bidders could not be learned. However, it is understood that Aurelius, which purchased The Body Shop in late 2023 and placed the company into administration three months later, is not among them.
Potential buyers could include Marks & Spencer and Next plc, both of which have large, third-party ecommerce platforms and robust beauty businesses.
Next plc, in particular, specializes in buying or striking deals with companies that have shut down or filed for bankruptcy in the U.K. such as Gap, Victoria’s Secret, Laura Ashley and Cath Kidston.
FRP declined to comment. WWD has reached out to Aurelius for comment.
A source familiar with the administration process said the overarching goal “is to get The Body Shop out of administration as soon as possible, and to secure the best outcome for the creditors.”
FRP said in a statement it remains “encouraged by the level of interest received to date from interested parties. The Body Shop remains an iconic brand, and following the structural changes we have made to the business since our appointment, we consider it has a viable future.”
Aurelius, the largest secured creditor, placed The Body Shop into administration in February, claiming it could not turn the business around fast enough given weak trading over the 2023 holiday season and the cost-of-living crisis in the U.K.
The argument was similar to what Mike Ashley’s Frasers Group said when it placed Matches into administration less than three months after buying it late last year.
Although both moves were legal per U.K. law, they left consumers, and the wider retail industry, scratching their heads. People wondered why Aurelius and Frasers Group bought their respective brands, and what sort of due diligence they conducted.