NEW YORK, Oct 5, 2001/--- --- The Body Shop is once again considering suitors. Its talks with supplements company Grupo Omnilife broke down last June, but chief Patrick Gournay has now announced that the board is in "preliminary discussions with a number of interested parties."

No names were named, but parties are thought to include private equity group Schroder Ventures and beauty bigwig Unilever. Soap retailer Lush was the only company to speak up and confirm its interest. Chief executive Andrew Gerrie described the Body Shop as "a very interesting business" and admitted that he is "always interested in developments with it."

Potential takeover news came along side particularly dismal first-half results, even for a company that's been slumping for some time. Pre-tax profits plummeted from $10 million to about $3.8 million. Gournay attributed the huge drop to the "general weakening of the marketplace" and added that last month's tragic events in America increased "uncertainty about economic stability and consumer confidence." Comparable store sales fell two percent.

Gournay also acknowledged that the company's results for the full year will be "highly reliant" on the holiday season. Hopefully, the return of many of The Body Shop's most popular lines, misguidedly axed from inventory over the last several years, will help make the season a successful one. The company is also planning to renovate UK stores and launch a holiday marketing campaign. It has more than 1,900 shops worldwide.

The Body Shop built its brand in the 1980s on its principles of environmental consciousness and publicized global campaigns against animal testing and human rights abuses. Though this social agenda is no longer driving the revenues it once did, rumor has it that all potential Body Shop buyers will require a seal of approval from the company's politically-charged founder Anita Roddick. The 58-year-old is assumed to be interested only in suitors that share her passion for social and environmental change. Grupo Ominlife seemed like a good fit. The Mexican company, which may still be a contender, is run by Jorge Vergara Madrigal, a billionaire who eschews socks because they interfere with his "natural systems."

Though Roddick no longer has a daily hand in the running of the company she founded in 1976, she and her husband Gordon are joint chairpersons and own 24 percent of the Body Shop. Co-founder Ian McGlinn holds a similar stake.

Last June, the asking price for the Body Shop was estimated to be anywhere from $430 million to $530 million. Now, likely bids are expected to hover around $250 million.

The news of potential Body Shop buyers was received well by investors. The company's shares rose five percent.