Body Shop co-chairman Anita Roddick is stepping down, it emerged today, as the chain she founded pulled the plug on takeover talks.

The group has been in on-off discussions with various suitors for a year, but today called a halt to the latest round and vowed to stay independent.

Director Adrian Bellamy said: "This process was not going to end in a satisfactory bid for the company, if indeed any bid was made, so it was decided it was time to terminate these talks and get on with running the business".

The decision has prompted a management shake-up to refocus on growing the company and Ms Roddick, along with her husband and co-chairman Gordon, have both announced they are to step down.

The pair, who own around 25 per cent of the Littlehampton-based retailer, will take non-executive roles.

Ms Roddick founded the company in 1976, opening her first shop in a Brighton back street with a £4,000 bank loan, but her husband said today the time was now right for them to take a less hands-on role.

He said: "We are very comfortable with the team and we really think, all things considered, that this is the best way forward."

Mr Roddick said neither he or his wife, who has struck a two-year consultancy deal with the company, had any intention of selling their stake.

As well as the departure of the Roddicks - who will be replaced as chairman by Mr Bellamy - Body Shop also announced today that chief executive Patrick Gournay was quitting.

Mr Gournay has resigned by "mutual agreement" and leaves in April, although Mr Bellamy denied it was linked to the failure to secure a takeover deal.

He will be replaced by Peter Saunders, currently chief executive and president of Body Shop in North America.

Over recent months Body Shop has seen a slump in sales and profits and Mr Bellamy said the group would now focus on turning this round.

It will introduce improved products, including a new make-up range due in the shops later this year.

Body Shop currently has around 2,000 stores worldwide, 326 of which are in the UK and Ireland.