The Body Shop plans to cut tax bill if it exits administration - Indoors Beauty

The Body Shop plans to cut tax bill if it exits administration

The Body Shop plans to cut tax bill if it exits administration

The Body Shop directors are getting ready a deal to cut back its tax bill when the enterprise returns to profitability to present additional money to collectors going through losses after it collapse.

FRP Advisory has drawn up plans to retain £66 million price of tax advantages constructed up earlier than the British model fell into insolvency as it seeks collectors approval for a restructuring deal, in accordance to The Times.

The collectors will profit from a proposal to defend tax losses that could possibly be used to cut back company tax due sooner or later, if The Body Shop might be saved and proceed solvent buying and selling.

Sources claimed collectors can be doubtless to safe a dividend reflecting the worth of the tax asset if they voted for a corporation voluntary association. Such a deal is commonly used to cut back the model’s hire bill, the publication emphasised.

However, it is known that The Body Shop’s deliberate CVA is not going to end in significant hire reductions for landlords.

The proposed deal would enable the model’s non-public fairness proprietor Aurelius to return additional cash to collectors as a dividend when The Body Shop exits administration.

Aurelius has drawn up the plans with FRP Advisory forward of a gathering held to reply questions from collectors and vote on the proposal.

The Body Shop collapsed into administration within the UK earlier this yr, shortly after new homeowners, European non-public fairness agency Aurelius, took management of the enterprise.

Aurelius, which specialises in shopping for and turning round troubled companies, secured a £207 million deal in November to purchase the Body Shop from Brazilian cosmetics big Natura & Co.

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these