Softbank's Body Shop deal goes down the plug hole

International cosmetics retailer, Body Shop, has announced it is to end its Body Shop Digital joint ecommerce venture with Softbank Technology Ventures - opting to take the operation inhouse.

The Body Shop Digital unit, formed in April with Softbank, will be shut down, pushing back implementation of the Body Shop's US ecommerce strategy to the second half of 2001. Angela Bawtree, head of investor relations at Body Shop, said: "We needed to balance investments with returns, running a joint company has proved more expensive. Working with the infrastructure we already have, we will make significant cost savings without Softbank." Bawtree also confirmed 40 jobs will be lost at the shared Body Shop Digital company's Seattle base, but stated the firm will still open around 50 new stores in the US next year. Body shop will purchase the rights and development work done to date by Japanese internet group Softbank for £4m, who saw its shares fall almost 15 per cent on its Nasdaq debut last Friday.