The Body Shop administrators are set to launch an auction of the vegan beauty chain after plans for a company voluntary arrangement (CVA) fell through.
Administrators at FRP Advisory will begin formally sounding out prospective buyers over the coming weeks, Sky News reported.
The move suggests the high stree retailer chain, which now trades from around 100 stores following a recent shop closure and redundancy programme, could find itself with a new owner.
Among the potential bidders are Next, which expressed an interest in a deal earlier in the insolvency process, and private equity firm Aurelius, which took control of The Body Shop only weeks before administrators were called in.
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An FRP spokesperson told the publication it had “not been possible to reach the necessary agreements for a CVA to be launched” with existing stakeholders.
“The joint administrators have therefore decided to commence a sale process for the underlying business and assets of TBSI [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.”
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