Waterstones owner Elliott Advisers is in the running to buy The Body Shop.
Elliott is understood to have submitted an indicative offer for the health and beauty retailer in recent weeks, according to Sky News.
The Body Shop’s owner, Brazilian cosmetics giant Natura, hoisted a ‘For Sale’ sign above the chain last month. It follows its sale of Aesop to L’Oréal for £2bn back in April.
The new outlet claims that Morgan Stanley is managing the sale process and hopes to reach a provisional agreement by the end of October.
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Natura snapped up The Body Shop in 2017 from previous owner L’Oréal but has struggled to maintain its profitability.
The group, which had grown rapidly in recent year through acquisitions, has posted six consecutive quarters of losses.
Executives told analysts last month that The Body Shop had weighed on the company’s bottom line as consumers shifted spending following the pandemic.
Elliott, which is best known as an activist investor, also owns US bookseller Barnes and Noble and backs accessories giant Claire’s.
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