The Body Shop has been saved from administration thanks to a rescue deal led by cosmetics magnate Mike Jatania, which has secured 113 stores and more than 1,000 jobs.
Former Molton Brown CEO Charles Denton will take over as CEO under the new ownership.
The deal, facilitated by administrators at FRP, involves the sale of The Body Shop to a consortium led by Jatania’s investment company Aurea. The agreement follows weeks of exclusive negotiations and aims to stabilize the company, which currently employs 1,300 people. While there are no immediate plans to close additional stores, the new owners may explore moving some branches to more favorable locations in different towns and cities.
The Body Shop’s journey into administration began earlier this year following its sale to private equity firm Aurelius for £207 million last November. The sale price was valued significantly lower than the €1 billion (£870 million) paid by previous owner Natura in 2017. The retailer’s financial problems were exacerbated when HSBC withdrew a credit line and Aurelius failed to obtain alternative financing, forcing the closure of more than 80 stores.
Despite being listed as The Body Shop’s main creditor, Aurelius was not the ultimate buyer. Instead, an auction attracted several bidders, including Mr Jatania’s Aurea and Gordon Brothers, the turnaround specialist led by former Mothercare boss Mark Newton-Jones. Aurea described the acquisition as its “largest transaction to date,” although details of the investment were not disclosed.
Aurea expressed its commitment to rebuilding The Body Shop and restoring its position as a leader in the ethical beauty sector – a market it pioneered under the leadership of founder Anita Roddick. Launched in 1976, The Body Shop was a pioneer in ethical cosmetics, known for its natural products and its commitment not to test on animals, setting a standard that has since been followed by other retailers such as Lush and Rituals .
Under Aurea’s ownership, Jatania has pledged to invest in new, innovative products and improve the shopping experience, while maintaining the brand’s ethical and activist roots. He will take on the role of executive chairman, while Charles Denton will lead the company as CEO. Jatania, who has a history of revitalizing neglected cosmetics brands, previously sold the maker of Lypsyl lip balm for almost $200 million (£156 million) in 2013.
Acknowledging the challenges ahead, Denton said: “We recognize that revitalizing the business requires bold action and a consumer-centric, commercially agile mindset. We believe a sustainable future lies ahead and, working closely with the management team, we aim to restore The Body Shop’s unique, values-driven, independent spirit.”
Steve Baluchi of FRP praised the new owners, highlighting their “long track record of successful retail turnarounds” and their confidence in the continued value of The Body Shop’s renowned name and legacy. With this rescue deal, The Body Shop’s future appears set for a new chapter of recovery and growth in the ethical beauty market.