Multi-brand retail giant Next has approached the administrators of The Body Shop regarding a potential deal to purchase parts of the natural beauty brand.
Next has expressed an interest to FRP as it considers acquiring assets as part of any sale process it launches, Sky News has reported.
However, there could be an intellectual property related issue to a Next rescue deal. The Body Shop brand and IP assets are not part of the administration process. It is understood that Aurelius is financing the rest of the business, and as part of that has secured major assets including stock and IP.
FRP is expected to decide whether to launch an auction in the coming weeks, with a sale of the restructured business in its new form back to Aurelius looking a likely outcome. FRP announced last week that it would try to save half of the Body Shop’s 198 UK stores, but 40% of head office roles would be cut.
A source has suggested that discussions between FRP and Next have already stalled, despite reports that Next have been monitoring The Body Shop for some time.
The high street retailer has saved many UK retailers from administration over the past few years. When vintage lifestyle brand Cath Kidson fell into administration in March 2023, Next snapped it up for a sum of £8.5mn. It went on to introduce the fashion and homeware brand to its Next Total Platform in June.
It also announced that another lifestyle brand it had acquired, Joules, would launch on its site in October 2023, the same month it purchased FatFace from its lenders for £115.2mn.
Additionally, Next holds shares in Gap, JoJo Maman Bebe, Reiss and Victoria’s Secret.
It is not just fashion brands the retailer is interested in. Next opened its first Made.com store at the end of 2023, after buying the furniture brand out of administration a year prior.
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