London, Embattled beauty brand The Body Shop has been rescued from administration with the help of investment from Indian-origin cosmetics tycoon Mike Jatania in a deal that will keep its remaining 113 UK stores in business, it has emerged. on Saturday.
According to the 'Guardian' newspaper, a consortium led by growth equity firm Auréa, founded by Jatania, had bought all of Body Shop International's assets, which include its stores in the UK and control of its outposts in Australia and North America, for an undisclosed sum.
"With Body Shop, we have acquired a truly iconic brand with highly engaged consumers in more than 70 markets around the world," said Jatania.
"We plan to relentlessly focus on exceeding their expectations by investing in product innovation and seamless experiences across all channels where customers shop, while paying tribute to the brand's ethical and activist positioning," he said.
The UK-based investor previously ran Lornamead, which owned personal care brands such as Woods of Windsor, Yardley and Harmony Haircare, before selling it 10 years ago.
The new owners of The Body Shop, who agreed a deal late on Friday, are not believed to be planning to close any of the UK stores they operate and employ around 1,300 people.
"We believe that stores are an important part of the brand's connection with its customers. Naturally, we will monitor the heritage footprint to ensure that we are optimizing performance through that connection," said an Auréa spokesperson.
The Body Shop, founded in 1976 as an ethical beauty brand by Anita Roddick, entered bankruptcy in February following the announcement of new owner Aurelius, who had bought the company three months earlier.
Since then, administrators at FRP Advisory have closed 85 stores, while nearly 500 retail jobs and at least 270 office jobs have been cut, according to the newspaper's report.
However, most Asian establishments, including those in India, are said to be run by franchisees and continue to operate.
According to UK media reports, Jatania will serve as chairman and Charles Denton, former CEO of beauty brand Molton Brown, will act as CEO of the newly acquired business.
"I am truly excited to lead this brand, which I have admired for many years. We recognize that revitalizing the business will require bold actions and a commercially agile, consumer-focused mindset.
"We believe there is a sustainable future ahead and, working closely with the management team, we aim to restore The Body Shop's independent, unique and values-driven spirit," Denton said.
Steve Baluchi, director at FRP Advisory, added: "We are delighted to be able to hand over The Body Shop to experienced new owners who have a long track record of successful turnarounds in the retail sector. They recognize the enormous value of their well-known brand and have a clear vision for their future."
According to the 'Guardian' newspaper, a consortium led by growth equity firm Auréa, founded by Jatania, had bought all of Body Shop International's assets, which include its stores in the UK and control of its outposts in Australia and North America, for an undisclosed sum.
"With Body Shop, we have acquired a truly iconic brand with highly engaged consumers in more than 70 markets around the world," said Jatania.
"We plan to relentlessly focus on exceeding their expectations by investing in product innovation and seamless experiences across all channels where customers shop, while paying tribute to the brand's ethical and activist positioning," he said.
The UK-based investor previously ran Lornamead, which owned personal care brands such as Woods of Windsor, Yardley and Harmony Haircare, before selling it 10 years ago.
The new owners of The Body Shop, who agreed a deal late on Friday, are not believed to be planning to close any of the UK stores they operate and employ around 1,300 people.
"We believe that stores are an important part of the brand's connection with its customers. Naturally, we will monitor the heritage footprint to ensure that we are optimizing performance through that connection," said an Auréa spokesperson.
The Body Shop, founded in 1976 as an ethical beauty brand by Anita Roddick, entered bankruptcy in February following the announcement of new owner Aurelius, who had bought the company three months earlier.
Since then, administrators at FRP Advisory have closed 85 stores, while nearly 500 retail jobs and at least 270 office jobs have been cut, according to the newspaper's report.
However, most Asian establishments, including those in India, are said to be run by franchisees and continue to operate.
According to UK media reports, Jatania will serve as chairman and Charles Denton, former CEO of beauty brand Molton Brown, will act as CEO of the newly acquired business.
"I am truly excited to lead this brand, which I have admired for many years. We recognize that revitalizing the business will require bold actions and a commercially agile, consumer-focused mindset.
"We believe there is a sustainable future ahead and, working closely with the management team, we aim to restore The Body Shop's independent, unique and values-driven spirit," Denton said.
Steve Baluchi, director at FRP Advisory, added: "We are delighted to be able to hand over The Body Shop to experienced new owners who have a long track record of successful turnarounds in the retail sector. They recognize the enormous value of their well-known brand and have a clear vision for their future."
