A troubling scenario unfolding in France

Following the UK’s declaration of insolvency for The Body Shop on February 13, the outlook for the British cosmetics brand in France, where it has a workforce of 260, is as uncertain as it is disquieting. Sources close to the matter reveal that since late January, the subsidiary overseeing operations in France and Benelux has been grappling with an indeterminate future.

In late January, Aurelius, the German investment entity that acquired The Body Shop in late December 2023, announced intentions to divest from roughly 10 European and Asian markets to revitalize the brand. Insights gleaned by FashionNetwork.com indicate that affected markets, including France and Benelux, were promptly notified of impending communications from their new proprietor.

The acquiring entity, Alma24, a London-based family office helmed by Friedrich Trautwein. Trautwein, a seasoned German entrepreneur, previously led Allied Healthcare, then under the ownership of Aurelius, for a brief period before its sale.

However, it appears that The Body Shop’s French and Dutch operations will not be part of this divestment and will remain under the umbrella of the British parent company, which entered insolvency on February 13, putting over 2,000 jobs at risk. This development portends a similar fate for the French market.

“It appears that the primary objective is to rectify The Body Shop’s predicament at the lowest possible cost, potentially at the expense of European taxpayers,” remarked the source.

On February 13, the German subsidiary, which would have been acquired by Alma24, was also placed into insolvency. The Belgian market is also expected to face the same fate, as reported by the British newspaper The Guardian, with potential ramifications for operations in Ireland, Austria, and Luxembourg.

Implications in France

In France, where The Body Shop initiated a turnaround strategy over a year ago, the retailer operates 59 stores and seven franchises, a format recently expanded. The brand, deeply entrenched in the retail segment, was poised to debut in multi-brand retailers.

Several European online platforms of The Body Shop, including those in France and the Netherlands, have undergone maintenance for several days. Aurelius, when contacted by FashionNetwork.com, remained tight-lipped about its strategy and has yet to respond to our inquiries.

Since its inception in 1976 in Brighton, England, by British entrepreneur and activist Anita Roddick, The Body Shop, a trailblazer in environmentally conscious and cruelty-free cosmetics, as well as fair trade, has changed ownership three times.

Initially acquired by L’Oréal in 2006 for €945 million, the brand was divested a decade later to the Brazilian cosmetics group Natura & Co in a transaction valuing it at €1 billion.

However, the onslaught of Covid, inadequate online presence, the burden of its retail network, potentially facing significant downsizing in the coming months, and the onslaught of competition from more agile players in the beauty industry, have finally thrown The Body Shop off balance. By the close of 2023, Natura & Co sold the brand to Aurelius for £207 million (€237 million), with £90 million payable over five years post-transaction closure and subject to a number of criteria.

As a B-Corp certified entity since 2019, The Body Shop boasted a global workforce of 7,000 and operated approximately 900 owned stores and 1,600 franchises as of 2022.