Body Shop International yesterday sold its core manufacturing business for £13.2 million sterling in a move which will see 500 staff of its staff transfer to a new company. The manufacturing operation, which makes a range of products including shampoos, body washes and cosmetics, has been sold to South African manufacturer Pac Creative.

Stocks at the plant are being sold for £6.4 million in cash. The fixed assets of the manufacturing business are being bought by Pac through a ten-year hire purchase deal.