A consortium led by British tycoon Mike Jatania is close to agreeing a rescue deal for The Body Shop , administrators of the stricken high street beauty chain have confirmed.
A bidding team headed by by Mr Jatania’s investment firm Aurea is in exclusive talks with joint administrators at FRP Advisory, with the former chief executive of beauty brand Molton Brown, Charles Denton, being lined up to lead the management team.
In a joint statement issued by Aurea and administrators of The Body Shop International, they said it is hoped that a deal can be struck in the “coming weeks”.
Aurea is now going through The Body Shop books, they added.
The Body Shop fell into administration in early February after previous forecasts for how much funding it would need to keep going proved too low, leading to hundreds of job losses and dozens of store closures.
The joint administrators of The Body Shop International and Aurea said: “While the deal is not yet complete, 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.
“A period of due diligence will now take place, with the intention to complete the transaction in the coming weeks.”
It comes after it was reported last week that Mr Jatania was nearing a deal for the chain following the recent bid deadline.
Mr Jatania previously ran Lornamead – the owner of personal care brands including Lypsyl, Woods of Windsor, Yardley and Harmony haircare – which he sold to rival Li & Fung for around £155 millionover 10 years ago.
Administrators have so far closed 82 Body Shop stores as part of a restructuring launched after the business collapsed, leaving it with 116 stores.
Around 489 jobs have also been cut as part of the shop closures, with about 270 head office jobs also axed.
The business had employed around 1,500 store workers before the administration.
The Body Shop hit the wall just weeks after European private equity firm Aurelius took control of the business, buying it from Brazilian cosmetics giant Natura & Co.
Aurelius had already agreed a deal to sell The Body Shop’s operations in most of mainland Europe and in parts of Asia to an international family office.
The Body Shop was founded in 1976 by Anita Roddick and her husband Gordon as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.
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