British beauty entrepreneur-led consortium reportedly rescuing Body Shop
12 Jul 2024 --- The Body Shop may soon have a new owner thanks to a consortium led by British tycoon Mike Jatania.
According to Bloomberg, people familiar with the matter say Jatania’s investment firm, Aurea Holding, is engaged in exclusive talks to buy the struggling UK cosmetics retailer after trumping rival bidders during an auction. Sources say Charles Denton, former CEO of fragrance and beauty brands Molton Brown, is also part of the consortium.
Jatania is well-known for building a cosmetics empire with Lornamead and then selling it eleven years later for approximately US$200 million to Hong Kong-based supply chain solutions giant and rival Li & Fung.
The Body Shop’s troubles first made headlines in February after private equity firm Aurelius said the chain fell into administration. It had purchased the retailer three months prior from Natura &Co, which agreed to sell The Body Shop to the international private equity group for £207 million (US$262 million) — a value that fell short of the £880 million (US$1 billion) Natura &Co paid L’Oréal seven years ago to buy The Body Shop.
Twists and turns followed, including store closures and hundreds of job losses in the UK and globally. Its business in Europe and parts of Asia was also sold to an international family office before the UK arm fell into insolvency.
Canadian subsidiary seeks cooperation
In March, The Body Shop Canada said it would close approximately a third of its stores and cease online operations. It also sought creditor protection and blamed the UK parent company for pushing it into debt.
Last week, a judge in the province of Ontario authorized a sale process that could result in new owners for the Canadian stores. Lawyers for The Body Shop Canada say 12 parties were interested in buying the retailer. However, they say any deal reached will depend on cooperation with the UK business.
The Canadian lawyers add that plans to sell the UK parent company are “well advanced.” Rescue bids for The Body Shop were reportedly due last week amid reports that administrators from FRP Advisory are eager to sell The Body Shop’s remaining assets.
By Anita Sharma
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