The Body Shop’s expected buyers are allegedly in talks to line-up new financing as they finalise a buyout deal.
Tycoon Mike Jatania’s Auréa consortium entered into an exclusivity agreement with the joint administrators of The Body Shop International in July to save the struggling beauty retailer.
Jatania’s firm is now rumoured to be in advanced talks with investor Hilco Capital, looking to secure working capital of roughly £30m, according to a report by Sky News.
Auréa’s acquisition of the beauty chain is also allegedly expected to be completed in the coming days after undergoing a period of due diligence.
Auréa declined to comment on the speculation when Cosmetics Business reached out.
Charles Denton, the former CEO of British body care brand Molton Brown, is leading the management team for Auréa group’s consortium.
The Body Shop’s UK business collapsed into administration in February 2024 just months after being acquired by private equity firm Aurelius for £207m.
This came after an extended period of financial challenges for the retailer, including multiple consecutive quarters of losses with former owner Natura & Co.
The Body Shop’s German and Danish arms filed for bankruptcy in the same month.
The beauty chain was then put up for auction after administrators at FRP concluded that an alternative restructuring of the high street retailer was not viable.