The Body Shop has been saved from administration through a rescue deal led by cosmetics tycoon Mike Jatania, securing 113 stores and safeguarding more than 1,000 jobs.
The former Molton Brown chief, Charles Denton, will take the helm as chief executive under the new ownership. The deal, facilitated by administrators at FRP, involves the sale of The Body Shop to a consortium headed by Jatania’s investment company, Aurea. The agreement follows weeks of exclusive negotiations and aims to stabilise the business, which currently employs 1,300 people. While there are no immediate plans to close additional stores, the new owners may explore relocating some branches to more advantageous locations in various towns and cities.
The Body Shop’s journey into administration began earlier this year after its sale to private equity firm Aurelius for £207 million last November. The sale came at a valuation significantly lower than the €1 billion (£870 million) that previous owner Natura had paid in 2017. The retailer’s financial troubles were exacerbated when HSBC withdrew a line of credit, and Aurelius failed to secure alternative funding, leading to the closure of more than 80 stores. Despite being listed as The Body Shop’s top 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 a commitment to rebuilding The Body Shop and restoring its position as a leader in the ethical beauty sector—a market it pioneered under the guidance of founder Anita Roddick. Launched in 1976, The Body Shop was a trailblazer in the ethical cosmetics space, known for its natural products and commitment to not testing on animals, setting a standard that has since been followed by other retailers. Under Aurea’s ownership, Jatania has pledged to invest in new, innovative products and enhance the in-store experience, while maintaining the brand’s ethical and activist roots. He will take on the role of executive chairman, with Charles Denton steering the business as CEO. Jatania, who has a history of revitalising neglected cosmetic brands, previously sold the maker of Lypsyl lip balm for nearly $200 million (£156 million) in 2013.
Denton acknowledged the challenges ahead, stating, “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.” FRP’s Steve Baluchi praised the new owners, highlighting their “long track record of successful retail turnarounds” and confidence in the enduring value of The Body Shop’s household name and legacy.
With this rescue deal, The Body Shop’s future looks set for a new chapter of recovery and growth in the ethical beauty market.
The Body Shop’s future, secured by Mike Jatania’s investment company, Aurea, looks promising with a renewed commitment to ethical practices and innovative products under the leadership of Charles Denton.