Marks & Spencer (M&S) and Next are reportedly considering bids for The Body Shop, following the collapse of its Company Voluntary Arrangement (CVA) plan. The British retail giants have shown early interest as administrators prepare for an auction of the business. This interest comes in the wake of The Body Shop being put into administration by its current owner, the German private equity group Aurelius, which is also expected to participate in the bidding process.
The Body Shop, a well-known cosmetics and skincare retailer, had been under the ownership of Natura &Co before being sold to Aurelius. After the administration filing, FRP Advisory, the appointed administrators, initially hoped to implement a CVA to restructure the business. However, the CVA was deemed unviable, leading to the decision to auction off the company instead.
Potential bidders, including M&S and Next, will find a significantly downsized business. Recent weeks have seen numerous store closures and redundancies, reducing The Body Shop’s footprint in the UK to just over half its former size. This streamlining is part of a broader effort to make the business more appealing to buyers.
The Body Shop’s predicament has drawn political scrutiny, particularly over how its British operations, previously reported as profitable, ended up in such a dire state. Nonetheless, FRP Advisory has indicated that they are “encouraged” by the interest from more than 70 potential bidders, although many are expected to be unsuitable. Ultimately, the final race for The Body Shop is likely to involve only a few serious contenders, with a decision expected over the summer.
