Consortium led by cosmetics tycoon seals The Body Shop deal and bets on innovation
10 Sep 2024 --- Cosmetics tycoon Mike Jatania rescues The Body Shop from administration, and his investment firm Auréa Group gains control of the Body Shop’s assets in Australia and North America.
The consortium led by Jatania acquired the beauty brand’s 113 UK stores, which remain trading, for an undisclosed sum. It is reported that this secures the immediate future for 1,300 shops and office workers, with no immediate plans to shut any of its remaining UK stores.
“With The Body Shop, we have acquired a truly iconic brand with highly engaged consumers in over 70 markets around the world,” says Auréa co-founder Jatania.
“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.”
Saving stores and jobs
Auréa Group calls the acquisition its largest transaction to date. The group reports it has “no immediate plans” to shut stores. However, it will monitor the estate’s footprint over the coming months while it works to manage costs.
The acquisition will perform efforts to “steer The Body Shop’s revival and reclaim its global leadership in the ethical beauty sector it pioneered.”
The Body Shop's 113 UK stores are said to remain open.The Body Shop fell into administration in early February. Following this, administrators said hundreds of employees would be laid off and dozens of shops would be closed. French Rowley Partners (FRP) Advisory administrators for the vegan beauty chain closed 85 stores, leading to 500 shop jobs and, minimally, 270 office roles axed.
Over 75 reported expressions of interest in taking over The Body Shop, including Next and Marks & Spencer, have been reported throughout the year. After months of negotiations, Auréa announced that the deal had been closed.
Tycoon’s track record
Mike Jatania was born in Kampala, Uganda and moved to Britain with his family in 1969. The Indian-origin tycoon saw great success in the early 1980s after he joined the family-owned Lornamead business, then sold it eleven years later for approximately US$200 million to Hong Kong-based supply chain solutions giant and rival Li & Fung.
Charles Denton, the former chief executive of Molton Brown, will head the new leadership team and says the new team will move in a different direction:
“We recognize that revitalizing 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.”
By Sabine Waldeck
