Retail Week understands that Natura & Co has set a final deadline for bids from interested parties for The Body Shop of October 23.
A source close to the process said Morgan Stanley, which is handling the sale of The Body Shop on behalf of its Brazilian owner Natura & Co, has set a deadline for final bids from all interested parties as it looks to get the sale process moving.
This comes after Retail Week reported the deadline for the first round of non-binding bids for The Body Shop expired on September 11, without any formal offers for the health and beauty specialist.
While Natura & Co has extended the deadline for final bids, it remains hopeful of completing a sale of the business by the end of the year, according to multiple sources close to the discussions.
Earlier this week, Retail Week reported that prospective bidders for The Body Shop are being put off by Natura’s high valuation ask of between £400m and £500m.
One source described the valuation as a “very optimistic” price for the struggling retailer, though they added that a bid is slowly being put together by at least one interested party.
A private equity firm is the most likely home for the struggling health and beauty chain. Lloydspharmacy owner Aurelius Group has emerged as the latest player in the running, joining other firms such as Waterstones owner Elliot Advisers, Epiris and Alteri Investors.
The Body Shop most recently reported dwindling profits as it continued to face top-line challenges amid tough macroeconomic conditions. In the second quarter of 2023, the retailer posted an 11.6% fall in gross profit and a 12.5% dip in net sales in constant currency terms.
Natura paid €1bn for The Body Shop when it acquired the chain from L’Oréal in 2017. In August, Natura announced it was “exploring strategic alternatives” for the health and beauty retailer including a possible sale of the business.
Since August, Morgan Stanley has approached “more than a dozen private equity firms in the City” on behalf of Natura, a source said, including Apollo Global Management, CVC Capital Partners and Blackstone, in a bid to drum up interest in the beauty retailer.
Retail Week has approached Natura for comment.
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