Stockport store among 113 saved as The Body Shop is bought out of administration

Ethical beauty retailer, The Body Shop, has been bought out of administration by specialist investment firm, Auréa, saving 1,300 jobs and keeping 113 UK stores open, including in Stockport.

Administrators, FRP Advisory, had previously closed 85 of the brand’s UK stores and made nearly 800 shop floor and back office staff redundant since The Body Shop’s UK business was placed in administration in February this year, just months after being bought by private equity group Aurelius, with creditors owed over £276 million.

The deal sees cosmetics tycoon Mike Jatania’s Auréa Group take over the ethical beauty brand, including its Australian and North American assets, for an undisclosed sum.

Auréa Group have reportedly beat out stiff competition in acquiring The Body Shop. Administrators received more than 75 expressions of interest amid negotiations, understood to have included other stalwarts of the UK high street, Next and Marks & Spencer.

Mike Jatania will serve as Executive Chairman of The Body Shop following the sale, while former Molton Brown boss, Charles Denton will take over as CEO.

Mike Jatania, co-founder of Auréa, said:

“With the Body Shop, we have acquired a truly iconic brand with highly engaged consumers in over 70 markets around the world. 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 while paying homage to the brand’s ethical and activist positioning.”

Charles Denton, chief executive of the Body Shop, added:

“I am truly excited to lead this brand which I have admired for many years. 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.”