A consortium of investors led by Auréa Group has emerged from a competitive bidding process within The Body Shop’s administration, the equivalent of bankruptcy in the U.K., and is set to buy the beauty retailer for an undisclosed amount.
The transaction is expected to be completed “in the coming weeks,” following a period of due diligence, according to a joint statement sent by email. Charles Denton, who previously led U.K. beauty and bath brand Molton Brown, will lead the management team.
The Body Shop entered the administration process in February after exploring strategic alternatives for months. Brazilian beauty conglomerate Natura & Co. acquired The Body Shop from L’Oréal in 2017, but the retailer has struggled to take advantage of the surge in beauty sales and the popularity of eco-friendly ingredients that has been its focus since its founding in the 1970s. Private equity firm Aurelius bought the company from Natura in November 2023 for about $257 million.
This year the brand continued to falter in multiple geographies. Its U.S. arm filed for Chapter 7 liquidation in March, claiming in U.S. Bankruptcy Court for the Southern District of New York that it was given no notice of the U.K. filing. The U.S. subsidiary also said its U.K.-based parent took all its cash, preventing it from paying its bills. In Canada The Body Shop announced a bankruptcy as well, and, though it remained open for business, shuttered many stores there.
Auréa Group, led by Mike Jatania, Paul Raphael and Andrew Vagenas, says it combines “the discipline of private equity with the long-term mindset of a family business.” The Body Shop will be older and more traditional than most brands run by Auréa, which has specialized in acquiring “digitally native, founder-led disruptive brands who have embraced new trends in science-backed products, natural and clean ingredients, ESG and sustainability,” according to its website. Its portfolio includes Herbivore, Scandinavian Biolabs and Dcypher.
“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,” the administrators and Auréa Group said in their joint statement.