Canadian billionaire Doug Putman, owner of HMV, is reportedly considering making an offer for The Body Shop as the beauty company’s operations in the US and Canada file for bankruptcy. Putman has allegedly reached out to the administrators of The Body Shop, but no formal bid has been made public yet. The speculation about a potential rescue bid arises following the bankruptcy filings of The Body Shop’s US and Canadian branches over the weekend.
The closure of 50 outlets has halted operations, jeopardizing approximately 400 jobs, including those at a distribution center holding significant stock value. In Canada, 33 out of 105 shops have shuttered, resulting in over 200 reported job losses. The financial challenges faced by The Body Shop have cast uncertainty over the fate of its Australian and New Zealand operations, as reported by The Guardian.
The company is reportedly grappling with cash flow issues following the administration of its UK parent last month. Administrators FRP Advisory announced the closure of 75 of The Body Shop’s UK stores, while 116 will remain operational as part of restructuring efforts. Additionally, The Body Shop’s Denmark division declared bankruptcy in February, resulting in the closure of 15 stores.
There are indications that the major UK retailer Next is considering a potential rescue bid for the struggling UK-based company, while The Body Shop continues to thrive in the Indian market. FRP Advisory, the administrators, are said to be focusing on fostering partnerships in Asia, Europe, and the Middle East.
Next, a British high-street fashion chain is currently in discussions about acquiring The Body Shop. Having closely monitored The Body Shop’s situation, Next has reached out to FRP Advisory, the administrators overseeing the company’s bankruptcy proceedings, to express their interest in purchasing certain segments of the struggling chain
