Yahoo Finance HMV owner considers rescue bid for The Body Shop
The Canadian businessman who rescued HMV is exploring a bid to buy The Body Shop out of administration.
Doug Putman, who is best known for buying the record shop out of administration in 2019 and piloting a turnaround, has contacted The Body Shop’s administrators to express an interest in buying the business, The Telegraph has learned.
Mr Putman is yet to table a formal bid but the approach will raise hopes that a deal can be reached to save jobs.
Administrators FRP has announced the closure of around 82 stores since The Body Shop was placed into administration last month, resulting in the loss of almost 500 staff. Closures have included the ethical beauty retailer’s flagship Oxford Street shop.
Mr Putman, 39, is the owner of Sunrise Records and Toys R’ Us in Canada. He has made a name for himself in British retail over recent years with the turnaround of HMV, which he bought for £883,000 after seeing off competition from the Sports Direct tycoon Mike Ashley.
HMV has returned to profit under Mr Putman’s ownership after focusing on vinyl and pop culture merchandise. Last year the music retailer reopened its flagship shop on Oxford Street, which it had been forced to shut in 2019.
If Mr Putman does table a bid for The Body Shop, he may face competition from former owners, private equity firm Aurelius. The German investment company is thought to be in pole position to reclaim The Body Shop’s assets if no sale takes place after becoming the company’s top creditor.
Aurelius placed The Body Shop’s UK arm into administration just weeks after buying it in a £207m deal. It has argued that the business was performing worse than expected.
However, the exact circumstances surrounding the collapse are the subject of controversy, with senior MPs calling for an investigation.
Figures seen by The Telegraph show that The Body Shop’s UK retail arm posted profits of £19m on revenues of £163m in the run-up to its collapse, sparking questions about why an insolvency process was necessary. Sources close to the situation insist the UK retail performance offers only a partial picture of the overall business.
FRP has also begun investigating claims that millions of pounds were taken out of the business before its sale to Aurelius. The investigation remains at an early stage.
Mr Putman’s interest in The Body Shop comes after the businessman unsuccessfully attempted to rescue the collapsed high street discounter Wilko last year.
In an interview with The Telegraph in November, Mr Putman said a proposed deal for Wilko was stymied by suppliers who tried to “hold the business hostage” by demanding inflated fees.
He said: “Excessively greedy giant companies, candidly, don’t give a s---. That chain was saveable.”
Mr Putman and FRP Advisory declined to comment.
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