The former CEO of Molton Brown is set to take the reins of The Body Shop in a deal aimed at preserving 133 stores.
FRP administrators announced the sale of The Body Shop to a consortium led by cosmetics mogul Mike Jatania, following weeks of exclusive negotiations.
Charles Denton, who previously led Molton Brown, will step in as the new chief executive.
This move is anticipated to safeguard over 1,000 jobs, with Mr. Jatania’s investment company, Aurea, reportedly having no immediate intentions to shut down additional stores. The Body Shop currently has 1,300 employees on its payroll.
According to insiders, the new owners may explore relocating some existing stores to better sites across various cities and towns.
This agreement comes after months of turmoil surrounding the retailer’s collapse in February, which led to the closure of more than 80 locations.
The Body Shop went into administration shortly after it was acquired by the private equity firm Aurelius for £207 million last November.
That deal placed The Body Shop’s valuation considerably below the €1 billion (£870 million) its former owner Natura had paid for the company in 2017.
At the time of the administration, reports suggested that The Body Shop’s financial situation was worse than anticipated.
In April, The Telegraph revealed that the collapse was triggered after HSBC withdrew a credit line, and the new private equity owners were unable to secure alternative financing.
Financial insiders initially speculated that Aurelius would be the leading bidder to buy the business out of administration, likely free from its previous debt.
Before the insolvency, Aurelius was listed as The Body Shop’s main creditor.
However, the auction drew multiple interested bidders, including Mr. Jatania’s company Aurea and the restructuring firm Gordon Brothers, which is led by former Mothercare CEO Mark Newton-Jones.
In a statement released late on Friday, Aurea described the acquisition of The Body Shop as its “largest transaction to date,” though it did not disclose the financial specifics.
Aurea highlighted that The Body Shop is a “truly iconic brand with deeply engaged consumers in more than 70 markets worldwide.”
The firm expressed its intent to rebuild the business and “reclaim its global leadership in the ethical beauty sector it pioneered.”
The Body Shop was founded in 1976 by Anita Roddick, and from its inception, it championed the sale of natural, cruelty-free cosmetics.
Other retailers, such as Lush and Rituals, have since emulated The Body Shop’s approach to ethical beauty products.
Under Aurea’s ownership, Mr. Jatania stated that The Body Shop would invest in innovative new products and its physical stores, all while “honoring the brand’s ethical and activist positioning.” Mr. Jatania will serve as executive chairman of the company.
Mr. Jatania built his wealth by acquiring and revitalizing struggling beauty brands. He previously sold Lypsyl, a lip balm manufacturer, to competitor Li & Fung for nearly $200 million (£156 million) in 2013.
FRP highlighted the new owners’ “long track record of successful retail turnarounds.”
Mr. Denton acknowledged the challenges ahead, saying: “Revitalizing the business will require bold action and a consumer-first, commercially agile mindset.”
He also expressed confidence in the future, adding: “We believe there’s a sustainable path forward, and by working closely with the management team, we aim to restore The Body Shop’s unique, values-driven, independent spirit.”
Steve Baluchi, a director at FRP, praised the new owners, noting they “recognize the significant value of the brand’s household name and have a clear vision for its future.”
