The Body Shop has been saved from administration in a rescue deal led by cosmetics tycoon Mike Jatania, securing 113 stores and safeguarding more than 1,000 jobs.
The agreement, orchestrated by administrators at FRP, has brought in Jatania’s investment company, Aurea, as the new owner, providing a much-needed lifeline for the ethical beauty retailer.
Former Molton Brown chief, Charles Denton, is set to become the chief executive under the new ownership. This deal comes after exclusive negotiations and aims to stabilise the business, which employs 1,300 people. Immediate store closures are not expected, but there may be relocations to more advantageous locations.
The Body Shop was pushed into administration earlier this year, following its sale to private equity firm Aurelius for £207 million last November. This was markedly less than the previous valuation of €1 billion (£870 million) paid by Natura in 2017.
An auction was held, attracting multiple bidders, including Mr Jatania’s Aurea and Gordon Brothers, led by former Mothercare boss Mark Newton-Jones.
Launched in 1976, The Body Shop was a pioneer in ethical cosmetics, known for its natural products and a staunch stance against animal testing, setting industry standards followed by other brands.
Denton acknowledged the challenges ahead: “We recognise that revitalising the business will require bold action and a consumer-centric, commercially agile mindset. We believe there’s a sustainable future ahead and working closely with the management team, we aim to restore The Body Shop’s unique, values-driven, independent spirit.”
With this rescue deal, The Body Shop’s future looks set for recovery and growth in the ethical beauty market.
The Body Shop’s rescue deal marks a significant turning point, securing jobs and stores while aiming for a stronger future in the ethical beauty sector.
With experienced leadership and strategic investments, the company is poised for revitalisation and continued commitment to its core values.
