The Body Shop Rescued: 1,300 Jobs Saved as New Owners Step In

Following the news we reported in February regarding The Body Shop potentially entering administration, the iconic beauty retailer has been rescued by a consortium led by British cosmetics tycoon Mike Jatania. This acquisition secures the future of the company’s remaining 113 UK stores, protecting around 1,300 jobs.

In addition to the UK business, the Auréa Group, a specialist investment firm involved in the deal, will take control of The Body Shop’s assets in Australia and North America. While the financial terms of the acquisition remain undisclosed, the deal was finalised last Friday, offering a lifeline to the ethical beauty brand.

Mike Jatania, who leads the consortium, expressed his excitement at acquiring the brand, calling The Body Shop "a truly iconic name" with a global reach in over 70 markets. He outlined plans to invest in product innovation and enhance customer experiences across all sales channels. Jatania emphasised a commitment to meeting customers' expectations as the company moves forward.

Auréa Group has indicated that no immediate store closures are planned. However, the firm will review the estate’s footprint in the coming months to manage operational costs, signalling the potential for future changes in its retail presence.

The Body Shop was founded in 1976 by Dame Anita Roddick in Brighton, growing rapidly into a global brand known for its ethical values, including a strong stance against animal testing. The company was sold to L’Oréal in 2006 and has since changed hands twice. It faced fierce competition from other natural beauty brands like Lush and Rituals, which contributed to its recent financial difficulties.

In late 2023, the private equity firm Aurelius bought The Body Shop for £207 million but struggled to turn the company around. By February 2024, it had placed the UK business into administration with over £276 million owed to creditors. Administrators FRP Advisory then closed 85 stores and cut nearly 770 jobs, including 500 shop roles and 270 office positions.

Despite over 75 expressions of interest, including bids from major UK retailers like Next and Marks & Spencer, it was Auréa Group that succeeded in acquiring the business. With 35 years of experience, Mike Jatania will now serve as Executive Chairman, while Charles Denton, a former CEO of Molton Brown, will take the role of Chief Executive Officer.

Charles Denton, expressing his enthusiasm for the role, acknowledged the need for "bold action" to secure The Body Shop’s future in a challenging retail market. He emphasised the importance of balancing innovation with the brand’s ethical roots.

FRP Advisory Director Steve Baluchi expressed confidence in the new ownership team, highlighting their experience in successful retail turnarounds and recognising The Body Shop’s value as a respected and beloved brand.

‍