The dealmaker behind Aurelius’s acquisition of The Body Shop has exited the private equity firm.
Peter Wood, who was UK managing director of the investment firm, has left the business, The Telegraph reported.
His resignation comes as The Body Shop was placed into administration this week, just three months after Aurelius’ £207m acquisition of the ethical beauty retailer.
It is thought that after the deal completed in January, Aurelius found The Body Shop’s finances to be in a much worse state than expected, sparking questions over what went wrong during the due diligence process.
Wood, who joined Aurelius in January 2018, said on LinkedIn when The Body Shop deal was first unveiled that he was excited “to bring the company back to its former glory”.
The German private equity firm is facing criticism over the deal, which saw it become top creditor to The Body Shop before its insolvency.
Aurelius appointed FRP as administrators of the retailer this week to “accelerate restructuring” at its UK business.
Store closures and job losses are expected across The Body Shop business, with the private equity firm thought to be in pole position to buy back the retailer’s assets in a process known as a pre-pack administration.
Store closures and job losses are expected across the business as it is understood Aurelius sees value in The Body Shop’s brand and could even run the company as an online business.
It took a similar approach at LloydsPharmacy, which it also owns. The private equity firm sold off the pharmacies branches over the past year, and filed for voluntary liquidation last month as it continues to run the brand online.
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Land Securities, which is one of The Body Shop’s biggest landlords, has blasted Aurelius for the potential pre-pack administration, which will leave other creditors such as landlords and suppliers, nursing losses.
A spokeswoman for the property giant told The Times the restructuring process is a “disruptive procedure that can turn combative and often creates distrust”.
“Brands struggling to navigate these processes serves no one, least of all the health of our economy, communities and cities, but it’s not the only option.
“Our business is set up to be customer-centric, which means working closely with brand partners to better understand how their businesses work and how their requirements may change.
“Partnering with brands enables us to better recognise their sector-specific needs so we can work with them collaboratively outside of a formalised process. This model, of early engagement and collaboration, is one of the key ways of finding hidden solutions and minimising losses for everyone involved.”
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