Body Shop: In Search of a Corporate Parent to Revive the Brand

內容大綱
In early 2024, The Body Shop International Ltd. (Body Shop) filed for administration, the UK equivalent of a bankruptcy. Aurelius Group (Aurelius), a private equity firm, owned Body Shop and, soon after acquiring it, filed for Body Shop’s bankruptcy. Experts have criticized private equity firms for destroying the value of firms, especially in the retail industry. The FRP Advisory Group (FRP), which Aurelius appointed to oversee the administration, asserted that it was “exploring all options to take the business forward.” The British high-street fashion chain Next was intending to acquire Body Shop. Experts also recommended that Body Shop appeal to younger shoppers to compete with companies like Lush and other competitors that offered a similar value proposition as Body Shop. Should FRP have considered selling the restructured Body Shop to Next or back to Aurelius? Which company could provide better corporate parenting advantages? How could Body Shop be revived?
學習目標
The case is intended for undergraduate and graduate-level courses on business strategy, strategic management, and retailing. After working through the case and assignment questions, students will be able to accomplish the following objectives:<ul><li>Explore possible sources of reviving a company.</li><li>Critically analyze turnaround intentions of private equity firms in acquiring a poor-performing company.</li><li>Examine reasons for the downfall of a company (i.e., why good companies go bad).</li><li>Evaluate what kind of a corporate parent provides corporate parenting advantages.</li></ul>
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