Photo by Vinicius “amnx” Amano on Unsplashed
So, the Body Shop UK business is in administration and faces an uncertain future three months after being bought by private equity firm Aurelius who had committed “…to re-energise the business to enable it to take advantage of positive trends in the high-growth beauty market.” Most of the overseas elements had been sold off already. A classic private equity (PE) play that only focuses on the needs of shareholders.
Goodness knows how founder Anita Roddick would be feeling if she were here to see this. Not good news for suppliers, employees and maybe above all, her cause ‘to fight for a fairer, more beautiful world’. When Roddick set up the Body Shop in 1976 I was 16 and I think she was the first entrepreneur I heard about when her story made the news.
I was, even then, a strong advocate for environmental causes and a kinder form of capitalism. She didn’t test her products on animals. She provided a refill system to reduce waste. She made products that were natural, affordable and fun. Designed by women for women in an industry controlled by men – she absolutely hated the beauty business. She was an inspiration for young Simon – and more to the point, for a generation of women. She was a trailblazer.
But as with many entrepreneurs she started with the need to earn enough to feed her family. She had a vision and the grit to pursue it. The force of her vision and personality contrasted sharply with the faceless corporations she pitted herself against. As she puts it in her 1991 book Body & Soul “…we took a holistic view of business, one in which we saw ourselves not just as a creator of profits for shareholders, but as a force for good, working for the welfare of our staff, for the community and ultimately for the future of the planet itself. Anita Roddick was an activist at heart. For younger readers this might surprise you, it is current to think of this as new thinking – in fact it was forged in the progressive 60s.
In my soon-to-be-published book Founder’s Legacy I talk about the founder’s mentality, something Anita was rich in. Her drive, passion and energy propelled the early growth and innovation that made the Body Shop special. When she sold it to L’Oreal in 2006 I have to admit I felt a bit betrayed. She stated that she believed the sale could allow her to be a “Trojan Horse” within the larger company, working through the Body Shop to improve its standards on animal testing and environmental issues. Did it work? It gave L’Oreal a redemption arc and arguably made The Body Shop a massive lever for change. But I am doubtful to be honest.
The Body Shop was sold to Natura & co in 2017 for 1 Billion euros. Natura & co is a B Corp company with a commitment to solving the climate crisis and defending human rights – Anita’s company seemed to have come full circle. The sale to Aurelius at the end of last year was for a fraction of what Natura paid – Aurelius was almost certainly the buyer of last resort, but it does not have to end here. Those closer to the business believe it has been starved of investment for too long and was outcompeted by players such as Lush. With the right owners and a good strategy the Body Shop may still have a good future. Over the life of a business the challenges change dramatically, and the art of leadership is knowing the time that you are in and bringing the right approach to bear. For its founder’s sake, I hope the Body Shop finds ‘safe hands’ and is once again led by a team that understands how to renew its market, product, leadership and culture.