Solution looms for Body Shop in the UK
Published: Wednesday, Jul 17th 2024, 18:50
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A solution is emerging for the insolvent cosmetics retailer The Body Shop in the UK. Following a competitive bidding process, exclusive talks are being held with a consortium led by the investment firm Auréa, according to a statement from the insolvency administrators and the consortium. The deal could therefore be concluded in the coming weeks.
The cosmetics company filed for insolvency for its UK division in mid-February and shortly afterwards also for its German branch. Lawyer Biner Bähr was appointed provisional insolvency administrator in Germany at the time. The Swiss branches of Body Shop, which were taken over by Coop in 2010, are not affected by insolvency proceedings in the UK and Germany.
The state of the stores in Germany
"In Germany, we have already made great progress in our search for investors," said Bähr. "However, it will be crucial that the new shareholder in England is found as soon as possible." A German Body Shop company would have to conclude a new franchise agreement with this new shareholder. "So everything is waiting for England and the result there."
Until then, business operations in Germany will continue. "Only a few stores have been closed since we filed for insolvency in February because we were unable to agree on market rents with the landlords."
The Body Shop brand was established in 1976 and was one of the first companies to focus on ethically produced cosmetics and skincare products. According to the British news agency PA, around 80 stores have been closed in the UK since the insolvency. Just under 120 still exist. The Body Shop has been owned by German investment company Aurelius since November 2023.
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