Administrators have announced that a deal to purchase The Body Shop has moved closer to being finalized. The high street cosmetics chain entered administration in February, resulting in the closure of 75 shops and the loss of 489 jobs.
According to reports, a team led by former Molton Brown chief executive Charles Denton is now in place to complete a rescue takeover deal. The decision follows an “exclusivity agreement” reached after a competitive bidding process. The agreement involves a consortium headed by investment platform Aurea Group, which is led by British millionaire Mike Jatania and a former senior executive from Swiss investment bank UBS.
An official statement from auditors stated that this deal represents “the best outcome for creditors” and will ensure the long-term success of The Body Shop due to the experience of the purchasing group.
While the deal has not yet been finalized, administrators have expressed their intention to complete the transaction in the coming weeks. They will now conduct due diligence checks before proceeding.
The future of The Body Shop has been a topic of speculation, with reports that Next had approached administrators to purchase part of the chain. There were also plans to launch a company voluntary arrangement (CVA) in which The Body Shop would enter talks with creditors. The administrators have expressed their satisfaction with the level of interest shown by potential buyers.
The Body Shop was founded nearly 50 years ago by the late Dame Anita Roddick and her husband Gordon.
