HMV owner considers bid for The Body Shop

HMV owner Doug Putman is said to be considering a bid for The Body Shop as the beauty company's US and Canadian operations file for bankruptcy. The Canadian billionaire is understood to have contacted executives at the cosmetics retailer with a view to acquiring the company. But formal bids have not yet been submitted.

Rumors of a rescue operation come after The Body Shop's U.S. and Canadian divisions both fell into administration over the weekend.

The retailer's U.S. operations filed for Chapter 7 bankruptcy in North America on March 9, under which its assets will be sold to pay off debts. The company has stopped trading at 50 outlets, putting around 400 jobs at risk. This includes roles in distribution centers with millions of dollars worth of inventory. In Canada, 33 of the cosmetics retailer's 105 stores have also closed, with more than 200 job losses reported.

The future of The Body Shop's Australian and New Zealand operations is uncertain due to financial difficulties, The Guardian reports. The company is rumored to be facing a cash crunch after its UK parent went bankrupt last month.

Administrators FRP Advisory said 75 of The Body Shop's UK stores will close as part of a restructuring plan, with 116 stores set to remain open. The Danish arm of The Body Shop also filed for bankruptcy in February, closing 15 stores.

Putman owns Canadian toy giant Toys'R' Us in Canada and music retail chain Sunrise Records. The 39-year-old also owns British music and entertainment retailer HMV, which he returned to profitability after rescuing it from the government in 2019.