The Body Shop fell into administration shortly after its sale to private equity firm Aurelius in a £207m deal last November. The transaction valued The Body Shop at significantly less than the €1bn (£870m) previous owner Natura paid for the business in 2017.
At the time of the administration, sources alleged that The Body Shop’s finances were in a worse state than expected.
The Telegraph revealed in April that the collapse had been triggered after HSBC withdrew a line of credit and its new private equity buyer failed to secure alternative funding. Aurelius declined to comment at the time.
City sources had suggested that Aurelius was the most likely bidder to buy the business out of administration, at which point it would be shorn of debt. Aurelius was listed as the retailer’s top creditor before its insolvency.
However, the auction attracted several interested parties, including Mr Jatania’s firm Aurea and Gordon Brothers, the turnaround outfit headed up by former Mothercare boss Mark Newton-Jones.
In a statement late on Friday, Aurea said The Body Shop deal was its “largest transaction to date”, although declined to give details on the size of the investment.
It added that the retailer was a “truly iconic brand with highly engaged consumers in over 70 markets around the world”.
Aurea said it would be looking to rebuild the business and “reclaim its global leadership in the ethical beauty sector it pioneered”.
The Body Shop was founded in 1976 by the late Anita Roddick. The business was a trailblazer when it launched, promising to sell natural cosmetics that would not be tested on animals.