The Body Shop is poised to welcome its third owner in under a year.
A consortium led by Auréa Group entrepreneur Mike Jatania has entered into an exclusivity agreement to buy the struggling beauty retailer out of administration.
A statement from the joint administrators of The Body Shop International and from Auréa read: “Following a competitive bidding process, the joint administrators of The Body Shop International have now entered into an exclusivity agreement with a consortium led by Auréa Group, with the management team to be led by former Molton Brown CEO Charles Denton.
“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.”
Jatania, who runs the investment business with Paul Raphael, an ex-UBS Group exec, and former Pharmapacks CEO Andrew Vagenas, has strong beauty industry experience.
He is the former CEO of Lornamead, the one-time owner of beauty brands Woods of Windsor and Yardley.
Auréa emerged as a favourite in the bidding war for The Body Shop earlier this month, pulling ahead of rival bidders including Gordon Brothers, the private equity firm behind Laura Ashley.
Modella Capital, part of private equity house R Capital, and Alteri Investors, the owner of Bensons for Beds, also allegedly bid for the brand.
Denton, CEO of the consortium’s management team has helmed skin care brand Erno Laszlo in addition to his chief executive position at Molton Brown.
FRP Advisory, which was appointed earlier this year to handle The Body Shop’s insolvency in the UK, launched an auction for the brand in May, having ruled out alternative restructuring as unviable.
The Body Shop’s purchase by Aurelius Group was announced in November 2023, but the company’s UK business collapsed into administration in February, just weeks after the £207m deal wrapped.
The sum was a fifth of what previous owner Natura & Co paid for The Body Shop in 2017.