A transformative rescue deal has secured the future of The Body Shop.
- Led by Mike Jatania, over 1,000 jobs and 113 stores have been safeguarded.
- Former Molton Brown chief Charles Denton will serve as CEO under this new deal.
- The sale aimed to stabilise The Body Shop, currently employing 1,300 individuals.
- Investment plans focus on product innovation and enhancing in-store experiences.
A recent rescue deal has ensured the continuity of The Body Shop, securing over 1,000 jobs and 113 stores, thanks to the efforts of cosmetics tycoon Mike Jatania. This development follows weeks of negotiations that culminated in the acquisition of the brand by a consortium led by Jatania’s investment company, Aurea.
Charles Denton, who previously led Molton Brown, will assume the role of chief executive officer at The Body Shop under the new ownership. The agreement, managed by administrators at FRP, reflects a concerted effort to stabilise the retailer, which currently employs around 1,300 people.
Despite no immediate plans for additional store closures, the new owners are exploring potential relocations to more strategically advantageous locations. This strategic reorientation comes after The Body Shop’s financial challenges earlier this year, which included the withdrawal of credit facilities by HSBC and Aurelius’s unsuccessful attempts to secure alternative funding.
Previously owned by Natura, The Body Shop was sold to private equity firm Aurelius for £207 million, a sum notably less than the €1 billion valuation in 2017. This financial instability led to an auction process that attracted bidders like Aurea and Gordon Brothers, yet ultimately saw Aurea as the successful acquirer.
Aurea has described this acquisition as their largest transaction to date, with a strong commitment to restoring The Body Shop’s position within the ethical beauty market—a segment it pioneered in the 1970s. They plan to revitalise the brand by investing in innovative products and enhancing the shopping experience, while maintaining its ethical stance.
With his extensive experience in revitalising neglected brands, Jatania will serve as executive chairman, supporting Denton in restoring The Body Shop’s unique identity. Denton has acknowledged the need for bold actions and a consumer-centric approach, expressing confidence in the sustainable future of the brand. “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,” Denton stated.
FRP’s Steve Baluchi has commended the new ownership for their longstanding success in retail turnarounds and expressed optimism for The Body Shop’s renewed growth in the ethical beauty sector.
The rescue deal marks a new chapter for The Body Shop, promising a revitalised and sustainable future in the ethical beauty industry.
