Sky News understands that Aurelius Group, which owns businesses including the Lloyds Pharmacy chain, is among the bidders for the company founded by Anita Roddick and her husband, Gordon.

Banking sources said that Epiris, the private equity firm, and Elliott Advisors, the owner of bookseller Waterstones, also remained in contention to buy The Body Shop.

It was unclear whether Alteri Investors, another bidder, remained in the process.

Owned by Natura, a Brazilian group, since 2017, The Body Shop employs about 10,000 people and operates roughly 3,000 stores in 70 countries.

Although it has struggled for profitable growth for years, it retains a prominent presence on British high streets.

Natura is working with bankers at Morgan Stanley on the sale and is understood to be keen to reach a provisional agreement on a sale by the end of this month.

Founded in 1976 by Roddicks, The Body Shop's opposition to animal testing won it a big consumer following, but has in recent years seen its environmental and social responsibility credentials matched by many rivals.

It was owned by L'Oreal, the cosmetics giant, prior to its sale to Natura.

Aurelius could not be reached for comment.