Next, the UK fashion retailing giant, has expressed interest in acquiring assets from the struggling cosmetics chain, The Body Shop, according to sources. Executives from Next have contacted FRP Advisory, the administrators overseeing The Body Shop’s insolvency in the UK, regarding a potential deal.
However, there are doubts about whether FRP will conduct a conventional auction, as contact between FRP and Next may have already stalled. Next has been monitoring The Body Shop for some time and has shown interest in assembling a deal.
Next, led by Lord Wolfson, has gained a reputation for acquiring distressed retail businesses in recent years, including brands like Fat Face, Joules, Made.com, Cath Kidston, and JoJo Maman Bebe.
However, a hurdle in the potential deal with The Body Shop lies in the fact that its brand and intellectual property assets are not part of the administration process. Aurelius, the owner of The Body Shop since January, is financing the remaining business and has secured significant assets such as stock and IP.
FRP is expected to decide whether to launch an auction in the coming weeks, and there is a possibility of selling the restructured business back to Aurelius. If Next proceeds with the purchase, it is unlikely to retain many, if any, of The Body Shop’s British stores.
The Body Shop, known for its environmental advocacy, was acquired by Aurelius from Natura, a Brazilian company, in a deal valued at £207 million last year.
