Beauty Bay has been saved from administration following its sale to an international investment group.
The online retailer, based in Manchester, UK, has announced the sale of the business and its assets via a pre-pack transaction to the French-owned AA Investments Group, facilitated by joint administrators Rick Harrison and James Clark from consultancy firm Interpath.
The transaction sees 62 employees transfer to the purchaser, with joint founder Arron Gabbie remaining with the business for a short period to facilitate a transition to the new owners.
The sale followed sustained pressure on the business, with challenges including cost inflation, policy uncertainty, and subdued consumer confidence.
The directors of the business had undertaken a review of their investment options and placed the company into administration when no solvent solution was found.
“We would like to say a huge thank you to our brilliant team who have helped to make Beauty Bay everything that it is today,” said Arron and David Gabbie, founders of Beauty Bay.
“Their commitment and support over the last 27 years have been unwavering, no more so than over these past few weeks.”
Rick Harrison, Managing Director at Interpath and joint administrator, added: “Since its inception in 1999, Beauty Bay has grown to become one of the UK’s leading online beauty retailers, selling well-known cosmetics and cult brands to over five million customers.
“We are pleased to have concluded this transaction, which will see the brand continue under new ownership, and wish everyone connected with the business all the best for the future.”
Founded as Fragrance Bay in 1999 by brothers Arron and David, Beauty Bay is an online retailer that sells products from more than 200 brands, including Anastasia Beverly Hills, Beauty of Joseon and The Inkey List.
It also has its own-label range, By Beauty Bay, which spans hair care, body care, colour cosmetics, skin care, tools and accessories.
The business was rumoured to launch as a public company several years ago, only to abandon IPO plans in May 2022 due to inflation.
Sales went on to fall by £40m that same year.
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