The Body Shop and Topshop are set to be sold by their owners in an attempt to raise hundreds of millions of pounds in cash.
The ethical cosmetics chain is set to be sold by its Brazilian parent to Aurelius Group, the private equity investor that owns Footasylum and Lloyds Pharmacy. Aurelius declined to comment.
The Body Shop, set up by Dame Anita Roddick, the campaigner, in 1976, was sold in 2006 to L’Oréal, the beauty company, which then offloaded it to Natura, the Brazilian cosmetics group that also owns Avon, for an estimated $1.1 billion in 2017.
Natura has been unable to reverse a decline in sales at The Body Shop, whose net revenues for the second quarter of this year fell by 12.5 per cent to £130 million.
Lower revenues at the business, which says it trades in 90 countries, are set to affect the deal price. Sky News, which first reported the sale, suggested it would be “substantially lower” than a previously suggested £400 million to £500 million.
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Separately, Asos is in talks to sell the Topshop brand, with Authentic Brands Group tipped as a likely bidder. The fashion retailer acquired Topshop, which also covers Topman and Miss Selfridge, for £330 million in 2021 from the vestiges of Sir Philip Green’s Arcadia retail empire.
The physical Topshop stores were closed down as Asos tried to integrate the brand into its online-only business. The latest annual report for Asos valued Topshop at £219 million.
Asos said it “does not comment on rumours or speculation”. Authentic Brands did not respond to a request for comment.
