Apr 7, 2017
Private equity bidders line up for The Body Shop
A handful of private equity groups are set to submit initial bids on Friday for The Body Shop, the struggling British skincare retailer, which has been marked for disposal by French cosmetic group L'Oréal. While L'Oréal had initially hoped to get as much as €1bn for The Body Shop, analysts and multiple people involved in the process are sceptical that such a valuation is attainable because of the challenges that the business faces. The Body Shop has a different business model to most of L'Oréal's brands. In February, L'Oréal said sales at The Body Shop, which has more than 3,000 stores in 66 countries, were down 4.8 per cent on a reported basis in 2016. Private equity groups, which represent the bulk of bidders for The Body Shop, are increasingly becoming more mindful of buying retail chains, which are under pressure from online competitors such as Amazon.
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