The Body Shop has been rescued from administration, in a deal that seems to safe the quick future for 1,300 store and workplace staff.
A consortium led by the British cosmetics tycoon Mike Jatania has acquired the moral magnificence model’s 113 UK shops which stay buying and selling, for an undisclosed sum.
The specialist funding agency Auréa Group may also achieve management of the Body Shop’s property in Australia and North America, in a deal which was finalised late on Friday.
Mr Jatania described the Body Shop as “a truly iconic brand” in style in over 70 markets world wide.
“We plan to focus relentlessly on exceeding their expectations by investing in product innovation and seamless experiences across all of the channels where customers shop,” he mentioned.
Announcing the deal, Auréa Group mentioned it has “no immediate plans” to close shops however that it might monitor the footprint of the property over the approaching months because it tries to handle prices.
The Body Shop was based in Brighton in 1976 by the late environmental and human rights campaigner Dame Anita Roddick.
What started as a single store within the seaside city rapidly grew into a world model identified for its magnificence supply, perfumes and moral stance towards animal testing.
Dame Anita and her husband Gordon bought the enterprise to French magnificence big L’Oreal in 2006. Since then it has modified palms twice, together with for as a lot as a reported one billion euros, amid fierce competitors from different pure magnificence manufacturers like Lush and Rituals.
The non-public fairness agency Aurelius paid £207m for The Body Shop in late 2023, however in February this 12 months admitted it couldn’t revive its fortunes and positioned the UK arm into administration. It owed greater than £276m to collectors on the time.
FRP Advisory has since closed 85 shops, whereas nearly 500 store jobs and at the least 270 workplace roles have been axed.
There have been greater than 75 expressions of curiosity to take over the ailing chain, reportedly together with Next and Marks and Spencer, however after months of negotiations, Auréa introduced that it had lastly closed the deal.
With 35 years of expertise within the business, Mike Jatania will function Executive Chairman, it mentioned. The former Chief Executive of Molton Brown, Charles Denton, will take over the helm as CEO.
“I am truly excited to lead this brand which I have admired for many years,” Mr Denton mentioned.
He added that “bold action” can be required to realize a “sustainable future”.
Steve Baluchi, Director at FRP Advisory, mentioned the corporate’s “experienced new owners” had a observe document of profitable retail turnarounds and that they recognised the model’s worth.
https://www.bbc.com/news/articles/cx2lzjlg182o