The Body Shop has gone into administration after struggling for years. The business issued a court notice that seeks protection from creditors and lines up advisory firm FRP Advisory to oversee the administration and manage a restructuring. The business will continue to trade as usual.
In November, Aurelius acquired The Body Shop from Natura &Co in a $254 million deal. Last week, the private equity firm announced that an estimated 14% of the physical and digital channels of the European and Asian businesses were sold to an international family office.
According to The Times, one private equity source claimed The Body Shop’s brand was likely to survive and that there could be suitable buyers for some of its British shops.
WHO: Founded in 1976 by the late businesswoman and human rights activist Anita Roddick and her husband Gordon, The Body Shop pioneered ethical consumerism and argued that business could be a force for good. Today, The Body Shop has 10,000 employees across 3,000 stores in about 70 countries and sells skincare, bodycare, and haircare products.
Aurelius is a globally active alternative investment group, distinguished and widely recognized for its operational approach. Its key investment platforms are the fund Aurelius European Opportunities IV and the listed Aurelius Equity Opportunities SE & Co. KGaA. Aurelius focuses on private equity, private debt, and real estate and is a renowned specialist for complex investments with operative improvement potentials such as corporate carve-outs, platform buildups, or succession solutions, as well as specialized financing solutions.
WHY: Aurelius concluded the retailer had insufficient working capital and was trading more weakly than anticipated. Acting quickly will put the business on firmer financial footing.
IN THEIR OWN WORDS: RP said in a statement, “Taking this approach provides the stability, flexibility and security to find the best means of securing the future of The Body Shop and revitalising this iconic British brand.”
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