The fate of vegan cosmetics brand The Body Shop seems sealed. The latest takeover offer for the brand has been rejected by its administrator, speeding up the deadline for a possible compulsory liquidation.
In receivership since April 2024, the environmentally friendly cosmetics brand The Body Shop could close its doors for good. Indeed, the administrator of The Body Shop France refused the only takeover offer on July 3 of part of its 51 points of sale and its 259 employees, presented during a hearing at the Paris commercial court.
Despite the one-month period granted to find new buyers, the proposal of Berger International was last in the running, since the offers from the two potential buyers had not previously been successful. Indeed, the Horizon Pharma group (Parashop), offered to take over 105 employees and 28 stores for the sum of 150,000 euros, but withdrew.
Berger International takeover offer not sufficient
The Berger International holding company, which notably operates the Maison Berger Paris brand, specializing in home fragrances, had revised its offer downwards by proposing to take over 12 points of sale by selling half of them in order to finance their offer and 30 employees. Berger International was also considering buy back all remaining stock of the brand in order to market it as a corner in its stores. However, as long as The Body Shop’s parent company does not find a buyer, the operation is impossible.
The brand, which recorded a turnover of 9 million euros in 2023, down 14.2% compared to the previous year, will know its fate on July 17, during the deliberations. Considering the current situation, compulsory liquidation will surely be pronounced. In the meantime, The Body Shop France seems to no longer have any cash, salaries will thus be taken care of by the AGS.
Source: www.ecommercemag.fr
