Administrators to launch auction for The Body Shop

The Body Shop administrators are to launch an auction of the high street chain after plans for a company voluntary arrangement (CVA) failed to materialise.

Administrators at FRP Advisory, which has been overseeing the collapsed business, will begin formally sounding out potential buyers in the coming weeks, according to Sky News.

The move raises the possibility of new owners taking control of The Body Shop, which was founded by Dame Anita Roddick in 1976.

NEXT is understood to have expressed an interest in a deal earlier in the insolvency process, while Aurelius, the private equity firm which took control of the beauty business just weeks before administrators were called in, is also among the possible bidders.

A spokesperson for FRP told the publication that after engaging with stakeholders about a company voluntary arrangement, it had "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 The Body Shop International."

FRP added that it had been "encouraged by the level of interest received to date from interested parties".

"The Body Shop remains an iconic brand and following the structural changes we have made to the business since our appointment we consider it has a viable future. This will be showcased to potential acquirors during the sale process."

The Body Shop collapsed into administration in the UK earlier this year, shortly after new owners, European private equity firm Aurelius, took control of the business.

Aurelius, which specialises in buying and turning around troubled firms, secured a £207 million deal in November to buy the Body Shop from Brazilian cosmetics giant Natura & Co.

Following its collapse, the British retailer shut 82 stores and made subsequent job cuts as part of a restructuring plan to "secure the future of the business".

FRP said that the reduced store footprint coincides with a renewed focus on the brand’s products, online sales channels and wholesale strategies, aiming to "bring the brand in line with industry peers and supporting a return to financial stability".