The Physique Store has been saved from administration in a rescue deal led by cosmetics tycoon Mike Jatania, securing 113 shops and safeguarding greater than 1,000 jobs.
The previous Molton Brown chief, Charles Denton, will take the helm as chief government underneath the brand new possession.
The deal, facilitated by directors at FRP, includes the sale of The Physique Store to a consortium headed by Jatania’s funding firm, Aurea. The settlement follows weeks of unique negotiations and goals to stabilise the enterprise, which at present employs 1,300 folks. Whereas there are not any rapid plans to shut further shops, the brand new homeowners might discover relocating some branches to extra advantageous places in numerous cities and cities.
The Physique Store’s journey into administration started earlier this yr after its sale to personal fairness agency Aurelius for £207 million final November. The sale got here at a valuation considerably decrease than the €1 billion (£870 million) that earlier proprietor Natura had paid in 2017. The retailer’s monetary troubles had been exacerbated when HSBC withdrew a line of credit score, and Aurelius didn’t safe various funding, resulting in the closure of greater than 80 shops.
Regardless of being listed as The Physique Store’s prime creditor, Aurelius was not the final word purchaser. As an alternative, an public sale attracted a number of bidders, together with Mr Jatania’s Aurea and Gordon Brothers, the turnaround specialist led by former Mothercare boss Mark Newton-Jones. Aurea described the acquisition as its “largest transaction to date,” though particulars of the funding weren’t disclosed.
Aurea expressed a dedication to rebuilding The Physique Store and restoring its place as a frontrunner within the moral magnificence sector—a promote it pioneered underneath the steerage of founder Anita Roddick. Launched in 1976, The Physique Store was a trailblazer within the moral cosmetics house, recognized for its pure merchandise and dedication to not testing on animals, setting a regular that has since been adopted by different retailers like Lush and Rituals.
Below Aurea’s possession, Jatania has pledged to put money into new, revolutionary merchandise and improve the in-store expertise, whereas sustaining the model’s moral and activist roots. He’ll tackle the position of government chairman, with Charles Denton steering the enterprise as CEO. Jatania, who has a historical past of revitalising uncared for beauty manufacturers, beforehand bought the maker of Lypsyl lip balm for practically $200 million (£156 million) in 2013.
Denton acknowledged the challenges forward, stating, “We recognise that revitalising the business will require bold action and a consumer-centric, commercially agile mindset. We believe there’s a sustainable future ahead and working closely with the management team, we aim to restore The Body Shop’s unique, values-driven, independent spirit.”
FRP’s Steve Baluchi praised the brand new homeowners, highlighting their “long track record of successful retail turnarounds” and confidence within the enduring worth of The Physique Store’s family identify and legacy. With this rescue deal, The Physique Store’s future appears set for a brand new chapter of restoration and development within the moral magnificence market.
