The deal

FRP have secured the future of the iconic high street ethical beauty brand The Body Shop, which has been acquired out of administration by the specialist investment fund Auréa, led by a serial industry entrepreneur, Mike Jatania and investor Paul Raphaël.

Founded in 1976, The Body Shop is a pioneer in the field of ethical beauty, offering skincare, body care, haircare and make-up with a focus on natural, fairly-traded ingredients.

The FRP restructuring team, led by partners Geoff Rowley, Alastair Massey and Tony Wright, and Director Steve Baluchi were appointed as joint administrators in February 2024.

We continued to successfully trade the business in administration while managing the sale process, which also included certain of The Body Shop’s overseas subsidiaries.

Our restructuring team then worked closely with our corporate finance team, led by beauty and wellness industry expert Victoria Kisseleva and her colleagues Charlie Hallaran and Madhavi Morjaria, to find a new home for The Body Shop.

The business attracted strong interest both from strategic acquirers and financial buyers worldwide. After a competitive process, specialist investment firm Auréa were successful in winning the bid.

Under Auréa ownership, The Body Shop will be led by Mike Jatania, who will serve as Executive Chairman alongside newly appointed CEO Charles Denton, body and skincare industry figurehead and the former Chief Executive of Molton Brown and Erno Lazlo. Together they have significant expertise in the sector, which they will bring to the well-established brand.

Victoria Kisseleva, Partner at FRP Corporate Finance, said: “Both Auréa and Charles have a strong reputation within the beauty and wellness industry. With a great sense of where industry trends are heading, they are well positioned to not only preserve the legacy of The Body Shop brand but support its exciting new journey.

There are very few global brands to which the British consumer has such deep emotional attachment. This was evident from the enthusiasm with which the news was received that The Body Shop will continue under new ownership. Their commitment to being a pioneer of ethical beauty is now more relevant than ever.

“Working with our restructuring colleagues, we’ve secured a great match which is the best possible outcome for The Body Shop and its employees, and I look forward to seeing how the next chapter of this company unravels.”

Mike Jatania said: “With The Body Shop, we have acquired a truly iconic brand with highly engaged consumers in over 70 markets around the world.

“We plan to focus relentlessly on exceeding their expectations by investing in product innovation and seamless experiences across all of the channels where customers shop while paying homage to the brand’s ethical and activist positioning.”

Charles Denton added: “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.”

Steve Baluchi, Director at FRP Advisory, said: “Our swift action to evaluate and restructure the group helped re-energise The Body Shop’s iconic brand and provide it with the best platform to return to profitability and compete for the long term.

“Following close collaboration with our corporate finance colleagues, we’re pleased to be able to handover The Body Shop to experienced new owners that have a long track record of successful retail turnarounds.