According to the Financial Times, L’Oréal is thinking about selling The Body Shop for 1 billion Euros. Eleven years ago, L’Oréal acquired The Body Shop for 652.3 Millions Pounds. Back then The Body Shop’s ethical stand was seen as an opportunity for L’Oréal to make it big on the natural cosmetic market.
However The Body Shop has been struggling for quite some time. In the first half of last year, like-for-like sales at the Body Shop fell 0.6 per cent to 398.6 Millions Euros compared with the same period the previous year. Operating losses worsened to 22.2 Millions Euros from 7.2 Million Euros. L’Oréal is collaborating with bankers at Lazard to come up with a plan. – The Financial Times.