M&S and Next consider buying The Body Shop

With an auction for troubled beauty brand The Body Shop set to begin soon, Marks & Spencer and Next have expressed an initial interest in saving the brand. This is the second time the British brand has been sold in the past year, following its acquisition by Aurelius Group in November 2023.

The Body Shop's administrators, FRP Advisory, said it was "encouraged" by offers from around 70 potential buyers. According to The Times, Aurelius is one of the interested parties preparing a bid to regain ownership of The Body Shop. This comes after FRP revealed in April that it was considering a company voluntary arrangement (CVA) to save the brand. However, the administrators said at the time that if a CVA could not be agreed, the business and its assets would go ahead with a sale.

Next had previously approached FRP Advisory in February with a view to acquiring the assets of the Aurelius Group's beauty brands. However, the potential deal hit a snag as The Body Shop’s brand and intellectual property (IP) assets were not part of the administration process.

In February 2024, The Body Shop’s UK and German businesses entered bankruptcy proceedings. Its Danish unit also filed for bankruptcy on February 29, while its French subsidiary entered bankruptcy proceedings in April.

Reports also emerged that The Body Shop fell into administration after its new owner failed to secure fresh funding following HSBC's withdrawal of its line of credit. After The Body Shop was sold, HSBC withdrew its credit line, causing the company to lose at least £100 million.

In the UK, the company has closed 197 stores as part of the restructuring process. The decision to close stores and cut jobs comes after The Body Shop has experienced a long period of financial difficulties. These included consecutive quarters of losses by the previous owner Natura & Co.