The Body Shop is on the verge of being rescued from administration after entering exclusive talks with a consortium led by British cosmetics mogul Mike Jatania.
Jatania's investment firm, Auréa, is negotiating with the UK's administrators for the chain, which entered administration in February, resulting in the closure of over 80 stores and hundreds of job losses. If the deal goes through, Charles Denton, former CEO of Molton Brown, will head the new management team.
A joint statement from Auréa and the administrators, FRP Advisory, confirmed that after a competitive bidding process, Jatania’s company is now conducting due diligence, with a sale anticipated soon.
The statement read: “While the deal is not yet finalised, we believe the consortium’s extensive experience, alongside the existing management team, offers the best outcome for creditors and will ensure The Body Shop’s long-term success.”
Founded in 1976 by the late environmental and human rights advocate Anita Roddick, The Body Shop became a prominent name on the British high street for its ethically produced cosmetics and skincare products. The company fell into administration after its previous owner, Aurelius, who had purchased it for £207m just three months earlier, failed to turn around its fortunes. At the time, The Body Shop owed creditors over £276m.
Since then, 82 stores have been shuttered, leaving 116 operational, with 489 shop jobs and 270 office positions cut.
