Saturday, November 9, 2024

Germany and Belgium expect The Body Shop’s regulatory applications to continue.

Must read


The Body Shop’s filing with British authorities last week did not end the once-thriving chain’s run-down, with new owner Aurelius also taking control of its German operations. . Next is the Belgian unit.

Reuters

Aurelius struck a deal late last year to buy the troubled business from Brazil’s Natura & Company for £207m, immediately relinquishing parts of its European and Asian operations.

The buyer has not been disclosed, but reports say it is Alma 24, run by Friedrich Trautwein, who is said to have ties to Aurelius.

Following the sale, Britain’s Arm regulator said the chain was likely to continue in some form, but that a number of stores would close and more than 2,000 jobs would be at risk.

The British chain is the brand’s largest in a single European country, but more than 460 jobs are still at risk in the UK due to the incoming German and Belgian governments.

According to reports, more than 60 stores and headquarters in Germany are likely to be closed.

There are also question marks over the company’s operations in other parts of Europe.

The Body Shop had been struggling for some time as Natura realized it didn’t have the power it needed to reinvigorate a huge global chain. The UK division had suffered heavy losses in recent years.

The deal between Natura and Aurelius was announced in November and was completed very quickly. But all the positive talk of reviving the chain began to crumble as business during the holiday season fell short of expectations.

The business is expected to survive, but government filings show it is likely to emerge in a slimmed-down form, retaining its previous form. Aurelius is likely to remain in control as it is a significant creditor ahead of other creditors and controls major assets.

Some of the steps the company took after acquiring the business are routine in private equity acquisitions. But many long-time employees feel their jobs are in jeopardy, with some former employees saying they haven’t been paid the money they’re owed, and the chain That is unlikely, given that the shock therapy he is currently enduring has been worse than expected. Improving the image of private equity with respect to personal acquisitions.

Copyright © 2024 FashionNetwork.com All rights reserved.



Source link

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article