Today (August 29th), according to reports, Natura &Co has stated that its board of directors has authorized the company to seek “strategic alternatives” for its subsidiary, The Body Shop, including the possibility of selling the business.
Previously, in April, Natura &Co sold its brand Aesop for $2.53 billion to the French cosmetics group L’Oréal. When news of the potential sale of The Body Shop emerged, the company’s stock price surged by 5% during morning trading.
It is reported that in the past few years, Natura &Co achieved rapid growth in performance through high-profile acquisitions, including the acquisition of The Body Shop from L’Oréal in 2017. However, since then, the company has faced challenges in terms of profitability and has experienced six consecutive quarters of losses.
During a previous conference call, company executives also stated that the changing consumer behavior due to the COVID-19 pandemic has impacted the profitability of The Body Shop.
In a company document, Natura &Co stated, “Natura does not intend to comment on or provide updates on this matter unless it is deemed necessary to disclose appropriate information based on the facts and circumstances at the time.”
It is known that The Body Shop was founded in the UK in 1976 and is known for its vegan beauty products, including shampoo, face masks, and essential oils.
