(London) The acquisition of British beauty chain The Body Shop by investment firm Auréa has been completed, the latter announced on Saturday, which does not plan to close any of the brand’s stores at this stage.
This acquisition concludes months of uncertainty and concern surrounding this emblematic chain, known for its ethical commitments, which filed for bankruptcy in February.
“This investment demonstrates Auréa’s desire to support original brands that serve a goal” in terms of beauty and well-being, Auréa said in a press release.
Charles Denton, former CEO of British perfumer Molton Brown, will head the chain, and Mike Jatania, co-founder of Auréa, will be its president.
The future CEO said he was “really looking forward to leading this brand that[il] admired for so many years,” while acknowledging that “revitalizing its activity will require courageous action.”
Auréa, however, specifies that it does not plan to close any of the brand’s stores in the immediate future.
The Body Shop, which before it filed for bankruptcy in February employed around 7,000 people worldwide, including 2,200 in the UK, had announced the closure of more than 80 of its 198 UK stores and more than 750 job cuts in the country.
This procedure only concerned the United Kingdom and not the rest of the brand’s global network.
The receivers of The Body Shop International had concluded an exclusivity agreement in July with the consortium of buyers led by the Auréa group.
The Body Shop was founded in 1976 in Brighton (South of England) by British entrepreneur Anita Roddick, a pioneer in environmentally friendly cosmetics, not tested on animals, and a supporter of fair trade.
L’Oréal bought the brand in 2006 for around 940 million euros, when it was at the height of its glory, and the charismatic businesswoman, who died the following year, was criticised for this choice, accused by some of making a pact with the enemy.
The brand’s star had then begun to fade, competed with by the rise of many other brands claiming a more ethical approach.
The company was then bought in 2017 by the Brazilian Natura Cosmeticos, then at the end of 2023, by the German investment fund Aurelius, for around a quarter of the billion euros paid by the Brazilian in 2017.
The Body Shop had since sold “loss-making businesses across much of continental Europe and parts of Asia”, according to its receiver FRP.
The Body Shop France was placed in receivership by the Paris Commercial Court at the beginning of April. Two potential buyers announced their intention in June.