RODDICKS DROP BUYBACK PLANS FOR BODY SHOP
Byline: James Fallon
LONDON — Gordon and Anita Roddick have called off their plan to take back The Body Shop International, which they founded in 1976. The Roddicks, who own about 25 percent of the public beauty firm, said in November that they were in preliminary talks with the company’s board about a possible buyout.
But in a statement Monday, they announced they are dropping the strategy.
“Having spent the last few months analyzing various financial possibilities, we and our management team have come to the conclusion that the considerable level of borrowings required would have impaired our flexibility in funding the company’s future global growth and retail innovation,” they said.
The company also indicated that problems in the American market continue to plague it.
“Performance remains disappointing in the USA, where we are working hard to build retail sales,” said Stuart Rose, its managing director. — Fairchild News Service