The Body Shop is nearing a rescue deal as a consortium of businesses, led by British tycoon Mike Jatania, is reportedly set to acquire the struggling beauty retailer.
Jatania’s investment firm Aurea Holdings is in exclusive talks with the British beauty brand’s administrators FRP Advisory to finalise the potential acquisition.
Molton Brown’s CEO Charles Denton is also rumoured to be working with Aurea Holdings on the deal.
The consortium of businesses has pulled 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, had also allegedly made bids for the brand.
The news, first reported by Bloomberg, comes after FRP Advisory launched an auction for the brand in May - concluding that an alternative restructuring was not viable.
The deadline for indicative bids was set for 11 June and marked a renewed effort to speed up a sale for the embattled business.
Aurelius Group bought The Body Shop in a £207m deal in November 2023, with the company’s UK and Germany businesses collapsing into administration on 13 February.
The Body Shop’s Denmark arm also filed for bankruptcy on 29 February, while its French subsidiary fell into administration on 4 April.
In the UK, 197 stores have closed as part of its restructuring process.
The store closures and job cuts came after a period of financial challenges for The Body Shop, including multiple consecutive quarters of losses with former owner Natura & Co.
The Body Shop’s French subsidiary is allegedly on the verge of compulsory liquidation.
The British cosmetic retailer’s French arm could potentially face closure, with only one bid allegedly left for a company takeover, according to a report by LSA magazine.
The Body Shop France was placed into receivership by the Paris Commercial Court on 4 April, with companies or investors interested in buying the subsidiary having until 3 June to declare themselves.
Cosmetics Business has contacted The Body Shop and FRP Advisory for comment.