Indian-origin tycoon rescues The Body Shop, saves 113 UK stores

The Body Shop revived: The Body Shop has been rescued from administration thanks to a deal led by Indian-origin cosmetics entrepreneur Mike Jatania. This rescue effort will ensure the continuation of its 113 remaining UK stores.

The deal, finalised by the consortium led by Jatania's growth capital firm Auréa, includes the purchase of The Body Shop International’s assets. This acquisition encompasses its UK stores as well as outlets in Australia and North America, though the financial terms were not disclosed.

Mike Jatania expressed enthusiasm about the acquisition, saying, “With The Body Shop, we’ve acquired an iconic brand with a strong customer base in over 70 countries.” 

Rescue deal preserves UK stores

The deal ensures that all of The Body Shop’s 113 UK stores, which employ over 1,300 staff members, will remain operational. 

The Body Shop, founded by Anita Roddick in 1976, entered administration in February. Aurelius, which had purchased the brand for £207 million just three months prior, failed to revive the company, which owed creditors over £276 million.

Since then, administrators from FRP Advisory have closed 85 stores, leading to the loss of nearly 500 retail jobs and at least 270 office positions. While European and US outlets have shuttered, many Asian stores operated by franchisees continue to run.

Auréa's acquisition is its largest transaction to date, with plans to revive The Body Shop and reclaim its global leadership in the ethical beauty sector. Jatania will assume the role of chair, and Charles Denton, former CEO of Molton Brown, will take on the role of CEO.

The consortium is negotiating with various financial institutions to secure working capital, with restructuring specialist Hilco reportedly set to provide £30 million.

(With PTI Inputs)