Body Shop exclusive bidder predicts administration exit next month

It’s July and the headlines around The Body Shop since January have been largely negative. But could August bring better news? One man thinks so and he’s in the hot seat, leading the key bid from the Mike Jatania-backed Auréa consortium.

The consortium is now in exclusive talks with the administrators FRP, and Charles Denton — the ex-Molton Brown CEO who’s on board with Auréa — has said that that business should be able to exit its administration status within a few weeks.

He’s also said the plan is that all of the UK stores — over 110 of them after a number of closures earlier in the year — will be retained.

He said the administration exit will come “if everything plays out as intended” and in a LinkedIn post added: “Over the next few weeks, we’ll work together to develop a strategic plan that sets up the business for long-term growth… It’s time to change the narrative around this powerful brand which is loved all over the world. I am optimistic about the future and look forward to what we can achieve together.”

FRP and Auréa had said last week that the competitive bidding process had resulted in a exclusivity agreement between the two. 

The deal wasn’t complete at that point but they added: “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.”

Due diligence is currently taking place so it’s to be hoped that no nasty surprises emerge. 

The business had been bought from Natura &Co by German private equity group Aurelius last last year but was put into administration in February after a series of nasty surprises made the new owner believe that the operation was in too bad a condition to continue as a going concern.

Since then, chunks of it have been sold off while the once massive global operations have been radically downsized with further international administration filings and store closures.

As for the potential new owner Auréa, as mentioned, includes the ex-head of Molton Brown. And Mike Jatania, the tycoon behind it, previously ran and sold Lornamead, owner of brands including Woods of Windsor, Yardley and Harmony haircare.

His Auréa Group aims to focus on beauty & personal care and work primarily with founders to build “global success stories”. The Body Shop hasn’t been a founder-led business for many years, but the opportunity to take on a globally known name that’s on the ropes but still has amazing brand awareness is clearly one it felt it couldn’t pass up.