Earlier this week, The Body Shop went into administration, putting around 2,000 jobs at risk. Photo: Gareth Fuller/PA
The employee who helped spearhead the private equity takeover of The Body Shop has abruptly left the company after the retailer collapsed just three months later.
Aurelius, a German buyout specialist where Peter Wood, who served as managing director, is facing criticism over the £207 million deal that saw the company become The Body Shop's main creditor before its insolvency.
The chain is now run by administrators FRP and is bracing for a wave of store closures and job cuts.
It is understood that after completing the acquisition in January, Aurelius found The Body Shop's finances to be in dire straits. The condition turned out to be worse than expected, prompting urgent discussions about what went wrong during the company's due diligence process.
At the time the deal was announced three months ago, Mr Wood, who joined Aurelius in January 2018, said on social media that he was excited to “bring the company back to its former glory.”
It happened. after the company said in November it wanted to «revitalize the business» and «enhance operational improvements.»
A person close to Aurelius said: “The business is in a much worse financial position than expected.”
“The deal was completed on January 1. After a couple of weeks, they realized that the situation was completely different.»
However, questions have been raised about the nature of Aurelius' cut-price takeover, with more than 2,000 jobs at risk.
Aurelius faces questions about an alleged non-payment of £3 million to a group of companies. about 20 former employees in January, which was reportedly part of an agreement reached with the former owners of The Body Shop Natura.
Aurelius is believed to have invested less than £20m in the deal as Natura's sale of the business was down significantly from the £870m it paid in 2017.
A senior retail source familiar with The Body Shop, said that failure to pay former employees represented «the unacceptable face of capitalism, an extreme form of private equity.»
A person close to Aurelius denied the claim was rejected and said the administrator would treat the payments like any other financial obligation.
Aurelius is understood to have a good chance of reclaiming The Body Shop's assets if a suitor does not emerge. The company's status as a major creditor means it will control the future of the business unless it is sold.
The retailer's UK stores will remain open while FRP administrators try to restructure the business and products will continue to be sold. online.
In a statement last week, administrators said: «The Body Shop has faced a long period of financial difficulties under its previous owners, which has coincided with a challenging trading environment for the wider retail sector.»
>
“With rapid action taken last month, including the closure of The Body Shop At Home and the sale of its business across much of Europe and parts of Asia, focusing on the UK business is the next important step in The Body Shop's restructuring.” /p> 
The Body Shop was founded by Dame Anita Roddick in Brighton in 1976. Photo: Jonny Green/PA
The Body Shop, founded in Brighton in 1976 by environmental activist Dame Anita Roddick, has been widely recognized for bringing ethical — or 'cruelty-free' — beauty products to a wider audience .
However, in recent years, the retailer has struggled with falling sales and increased competition from new high street rivals such as Lush and Rituals in the UK.
The Body Shop posted a loss of £71 in its latest company accounts. million pounds sterling. in 2022, compared with a £10 million profit made while the business was still owned by Brazilian cosmetics group Natura.
Natura called 2022 «the most difficult year in The Body Shop's history.» < /p>
The latest problems have also led to Germany's The Body Shop, which employs around 350 people across 66 stores, filing for bankruptcy.
Meanwhile, the collapse of its UK unit has left landlords stranded. including shopping center owner Land Securities and Network Rail preparing to close. The future of the Body Shop on UK high streets remains uncertain.
Aurelius declined to comment.
Mr Wood, who has left Aurelius, was contacted for comment.
Свежие комментарии