The Body Shop has been rescued from administration, securing the future for 1,300 employees across its UK stores and offices. British cosmetics tycoon Mike Jatania, leading a consortium, has acquired the brand’s 113 UK locations for an undisclosed sum. Auréa Group, the investment firm involved, will also take over The Body Shop’s assets in Australia and North America, finalising the deal late last week.

Jatania described The Body Shop as “a truly iconic brand” and aims to invest in product innovation and enhance customer experiences. Although Auréa Group has no immediate plans for store closures, it will evaluate the store footprint in the coming months to manage costs effectively.

Founded in 1976 by Dame Anita Roddick in Brighton, The Body Shop grew from a single shop into a global brand known for its ethical stance and beauty products. After being sold to L’Oréal in 2006, it changed hands twice, including a £207 million acquisition by private equity firm Aurelius in late 2023. 

However, Aurelius struggled to turn the business around and placed the UK arm into administration earlier this year, with over £276 million owed to creditors. The decision to put the UK arm into administration was driven by the inability to stabilise the business, which faced rising operational costs, competitive pressures, and declining consumer interest.

Following the administration announcement, FRP Advisory, the insolvency firm, closed 85 stores and cut nearly 500 in-store positions and around 270 office jobs. Despite over 75 expressions of interest from potential buyers, including Next and Marks & Spencer, Auréa successfully completed the acquisition. Mike Jatania will serve as Executive Chairman, with Charles Denton, former CEO of Molton Brown, appointed as CEO. Denton highlighted the need for “bold action” to secure a sustainable future for the brand, while Steve Baluchi from FRP Advisory praised the new owners’ track record in retail turnarounds.