The Body Shop owner Natura & Co is considering a possible sale of the UK retailer after struggling to revive its fortunes post-pandemic.
The beauty conglomerate is exploring “strategic alternatives” for its skincare unit, which it acquired from L’Oréal in 2017 for £857m.
A sale of the natural beauty retailer – valued at £405m – is the most likely outcome, according to J.P Morgan analysts, following the sale of its Aesop brand to L’Oréal for £2bn back in April.
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Natura has grown rapidly in recent years through a series of high-profile acquisitions. However, the beauty group has faced difficulties with profitability, posting six consecutive quarters of losses.
In a bid to return to profitability, the group has been looking for “discipline” and deleveraging.
Executives told analysts earlier this month that The Body Shop had weighed on the company’s bottom line as consumers shifted spending following the pandemic.
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