The Body Shop’s French subsidiary is allegedly on the verge of compulsory liquidation.
The British cosmetic retailer’s French arm could potentially face closure, with only one bid allegedly left for a company takeover, according to a report by LSA magazine.
The Body Shop France was placed into receivership by the Paris Commercial Court on 4 April, with companies or investors interested in buying the subsidiary having until 3 June to declare themselves.
The judicial administrators then extended the deadline by another month, with two partial takeover bids submitted.
Interest came from Horizon Pharma, a distributor of pharmaceutical and parapharmaceutical products, and Berger International, a specialist in candles and home fragrances and the owner of My Jolie Candle.
The receiver of The Body Shop France allegedly rejected Berger International's offer at a hearing in Paris on 4 July to decide the future of the brand, reported LSA.
Horizon Pharma is also rumoured to have withdrawn its bid, according to the publication.
The Body Shop France will know its fate on 17 July.
The collapse of the beauty retailer’s French subsidiary follows the company’s UK and German arms falling into administration on 13 February.
The Body Shop’s Denmark arm also filed for bankruptcy on 29 February.
This news came after an extended period of financial challenges for The Body Shop, including multiple consecutive quarters of losses with former owner Natura & Co.
Store closures and job cuts have taken place in the UK as part of the company’s restructuring process.
The Body Shop’s parent company Aurelius appointed FRP Advisory earlier this year to handle the UK business’s insolvency.
Read more:
- Who has bid for The Body Shop?
- The Body Shop’s next steps: Inside an administration journey
- The Body Shop owes former owner £15 million
- Why does no one know what to do with The Body Shop?
- The Body Shop’s B Corp certification at risk
