HMV rescuer mulls Body Shop bid, beauty chain shuts American ops

One of the UK high street’s most prominent rescuers is reportedly mulling a bid for The Body Shop, while the company has shut its US stores and is liquidating some Canadian outlets. 

First the UK. Canadian businessman Dough Putman (who bought and revived the HMV chain) is believed to have contacted The Body Shop’s administrators with a view to potentially buying the business.

That’s according to The Telegraph, which said he hasn’t yet made a formal bid and also hasn’t commented on the report.

The firm’s administrators — FRP Advisory — stepped in after short-term owner Aurelius (which paid £207 million for the chain only recently) put it into administration in the UK. FRP has closed or is closing 82 of its stores with over 100 still planned to operate.

It had been thought that Aurelius would be in a prime position to re-acquire the slimmed-down firm as it’s The Body Shop’s top creditor. But Putman could be a formidable rival.

The billionaire owns Sunrise Records and Toys R’ Us in Canada, as well as the UK’s HMV, which has returned to profit and also recently reopened its historic flagship store on London’s Oxford Street.

But Putman failed in his attempt to rescue the Wilko chain last year, telling The Telegraph in an interview that his proposed deal was blocked by suppliers who tried to “hold the business hostage” by demanding high fees. Wilko eventually went under but Putman insisted “that chain was saveable”.

Meanwhile, as mentioned, The Body Shop has filed for Chapter 7 insolvency in North America, a process in which assets are sold to clear it debts. The firm’s 50 stores in the US have ceased trading with 400 jobs at risk.

In Canada, 33 of its 105 stores have begun liquidation sales and online Canadian sales have ceased.

The Guardian also reported that its Australian and New Zealand operations’ fate hangs in the balance with access to funds cut off. It has almost 100 stores in Australia. The firm is believed to be profitable in the region and could fund operations from cash flow, but would need additional money to cover debts to suppliers.