Thursday, December 26, 2024

Major update is issued on the future of all 100 Body Shop branches as beauty brand’s administrator confirms chain is up for auction

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  • Administrators FRP Advisory confirmed that The Body Shop is up for auction
  • The business is up for sale after a restructuring plan was not deemed viable
  • The operation of the 100 stores still open will not be affected for the time being

A major update has been issued by The Body Shop’s administrators on the future of its 100 remaining branches following mass store closures.

After a restructuring plan was not deemed viable, it has been confirmed that the chain is up for auction, meaning the business and its assets are up for sale.

The news has been confirmed by FRP Advisory, which has been overseeing the business since it collapsed in February.  

The operation of the 100 stores still open will not be affected for the time being as rumours swirl that other firms are looking to buy the chain.

However, if a buyer is not found, the future of the stores and the business in its entirety will be in doubt.

Administrators have confirmed that The Body Shop is up for auction after a restructuring plan was not deemed viable

Following mass closures since it went into administration in November, 100 stores remain

Following mass closures since it went into administration in November, 100 stores remain

An FRP spokesperson said: ‘Following the appointment of joint administrators in February efforts have been made to stabilise the business of TBSI and effect various restructuring initiatives.

‘To date there have been efforts to deliver a rescue of TBSI by proposing a Company Voluntary Arrangement (CVA) to creditors.

‘Prior to launching a CVA efforts have been made to engage with key stakeholders to agree terms on various matters.

‘Despite the engagement of various parties, it has not been possible to reach the necessary agreements for a CVA to be launched.

‘The joint administrators have therefore decided to commence a sale process for the underlying business and assets of TBSI.

‘We remain encouraged by the level of interest received to date from interested parties.’ 

According to Sky News, the owners of Next have previously expressed an interest in a takeover of The Body Shop and Aurelius – the investment firm which took control only weeks before administrators were called in – is also reportedly among possible bidders.

The cosmetics and perfume brand collapsed on February 13 with seven stores closing the very next day.

Its Body Shop at Home service was also closed with the Ambassador Programme, devised to replace it, also eventually axed.

Aurelius bought the high street brand in November 2023 and has also sold off most of the business in mainland Europe and Asia since seeing administrators take over in the UK.

In the same time, around 500 staff have lost their jobs and over 270 head office roles have been axed.

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