Insolvent cosmetics chain The Body Shop faces takeover – 2024-07-18 07:57:21

by times news cr

2024-07-18 07:57:21

The cosmetics chain The Body Shop is insolvent after several sales. Now another takeover is looming.

The insolvent cosmetics chain The Body Shop has found a potential investor for its business in its home country of Great Britain. An agreement with the investment company Aurea is in the works, the FRP law firm, which is leading the insolvency proceedings, announced on Wednesday. The takeover is expected to be sealed in the coming weeks.

“Although the transaction has not yet been completed, we believe that the combined experience of the consortium together with the existing management team represents the best outcome for creditors,” explained the insolvency administrator. This will ensure the company’s long-term success.

The Body Shop has around 3,000 stores in more than 70 countries worldwide, 200 of which are in Great Britain alone, where it recently employed 2,200 people. The Body Shop is also represented in Germany, and The Bodyshop Germany GmbH also filed for insolvency in February.

The German investment fund Aurelius took over the chain in November last year. Shortly afterwards, the company ran into difficulties due to the reluctance to buy during the Christmas season. Aurelius has already sold large parts of the European and Asian business to an unknown buyer.

The Body Shop was founded in 1976 by Anita Roddick in Brighton, England. The animal rights activist sold “ethically sourced and naturally-based ingredients from around the world, in packaging that was fuss-free and easy to refill,” according to the company’s website.

In 2006, the chain was taken over by the French group L’Oréal for around 940 million euros. Roddick was sharply criticized for this. She died in 2007. In 2017, the company was sold to Brazilian competitor Natura Cosméticos for one billion euros, and then in 2023 to Aurelius for significantly less money.

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