The Body Shop has been rescued from potential administration through a deal orchestrated by cosmetics entrepreneur Mike Jatania, ensuring the preservation of 113 stores and over 1,000 jobs. Under new ownership, former Molton Brown chief Charles Denton will assume the role of chief executive, with administrators at FRP facilitating the sale to Jatania’s investment company, Aurea.
The agreement followed extensive negotiations and is intended to secure the future of The Body Shop, a business that currently employs around 1,300 individuals. While immediate store closures are not on the agenda, the new owners may consider relocating some branches to more advantageous locations in different towns and cities. The journey into administration for The Body Shop began earlier this year after a sale to private equity firm Aurelius at a substantially reduced valuation compared to previous transactions.
The financial struggles of the retailer were further compounded by the withdrawal of a line of credit by HSBC and the inability of Aurelius to secure alternative funding, resulting in the closure of more than 80 stores. Despite Aurelius being listed as The Body Shop’s top creditor, the ultimate buyer turned out to be a consortium led by Jatania’s Aurea investment company, outbidding other contenders in an auction process. Aurea has expressed a strong commitment to revitalizing The Body Shop and reinstating its leading presence in the ethical beauty industry, a sector it helped pioneer under founder Anita Roddick.
The ethos of The Body Shop, established in 1976, has been rooted in ethical practices such as producing natural products and refraining from animal testing. As the new owners take charge, plans are in place to invest in innovative products, enhance the in-store experience, and uphold the brand's ethical and activist origins. With Jatania as executive chairman and Denton as CEO, there is a shared vision to navigate the challenges ahead and restore The Body Shop’s distinctive, values-driven identity. Steve Baluchi from FRP praised the new owners for their successful retail turnarounds and expressed confidence in the enduring value of The Body Shop’s iconic brand, indicating a positive future ahead for the company in the ethical beauty market.