The Body Shop changes hands again for £200m

Once-pioneering British ethical beauty brand The Body Shop has been sold for £207m.

It is a comedown for the brand that was worth four times that amount last time it was sold just six years ago.

Brazilian cosmetics group Natura said it was selling the chain "to simplify and refocus its operations".

The brand, which has a presence in 70 countries, has now changed hands three times since it was sold by founder Anita Roddick in 2006.

The Body Shop, founded in 1976, initially stood out for its ethical stance. Ms Roddick, later made a dame, campaigned against animal testing and on social issues.

The Body Shop's key products have included body scrubs, white musk perfume and fruit-scented shower gels with all-natural ingredients.

But some loyal customers saw Dame Anita's decision to sell the company to L'Oreal for £652m in 2006 as a betrayal of its ethical values. L'Oreal then sold the firm to Brazilian beauty giant Natura in 2017 for £880m.

Its new owner, global private equity group Aurelius, has investments in fashion and sportswear brands in the UK including Footasylum.

Ian Bickley, chief executive of The Body Shop, said the sale would allow the company to open "a new chapter".

Under Natura's ownership The Body Shop redesigned its stores and introduced a refills service, but failed to turn around its finances.

Analyst Catherine Shuttleworth blamed a "lack of innovation" and "catch-up by other players in the market" which meant it had fallen out of favour with shoppers in recent years.

The Body Shop's fortunes improved during the pandemic as people pampered themselves at home, but demand waned after the cost-of-living crisis hit, said Tash Van Boxel, analyst at GlobalData.

"The Body Shop's recent struggle has been driven by consumers trading down to more affordable retailers, casting aside sustainability and ethical claims in favour of value-for-money and lower price points," she said.

On top of the purchase price, Natura is in line for a £90m "earn-out" from The Body Shop's revenues over the next five years.