The Body Shop rescued by consortium after retailer’s collapse

New management team will be led by former Molton Brown CEO Charles Denton

In February this year, The Body Shop's Irish operations fell into liquidation following a tumultuous period for the popular chain, leading to the loss of 50 jobs across seven stores.

Cosmetic retailer The Body Shop has been rescued from insolvency with a consortium led by British tycoon, Mike Jatania agreeing to buy the long-standing skincare chain.

The acquisition of the long-troubled UK retailer is expected to be completed in the coming weeks, with the new owners including investment fund Aurea Holding, which Jatania runs with former UBS Group AG banker Paul Raphael, and Charles Denton, former chief executive officer of fragrance brand Molton Brown.

In a joint statement to the Irish Examiner, the administrators of the Body Shop International and Aurea group said they have entered into an exclusivity agreement following a "competitive bidding process."

"While the deal is not yet complete, we believe the combined experience of the consortium, together with the existing management team, represents the best outcome for creditors and will ultimately ensure the long-term success of The Body Shop."

“A period of due diligence will now take place, with the intention to complete the transaction in the coming weeks.”

The Body Shop was founded in 1976 and became popular for selling cosmetic and hygiene products that were not tested on animals. 

However, the business has been unprofitable for years as it struggled to compete with rivals.

In February this year, The Body Shop's Irish operations fell into liquidation following a tumultuous period for the popular chain, leading to the loss of 50 jobs across seven stores.

The retailer was previously sold to Pan-European investor Aurelius, which owns Footasylum and Lloyds Pharmacy, in a deal worth £207m (€242m).

Most of the retailer's European business was then subsequently sold to another buyer, Alma24. 

The UK business of The Body Shop also fell into administration, a UK insolvency process, in February, with the retailer stating it would close almost half of its 198 UK stores. Administrators from FRP Advisory blamed its collapse on financial challenges under Natura.

Additional reporting from Bloomberg.