A deal to buy It looks like everyone is getting along better at The Body Shop, the managers said.
In February, the high street beauty chain went bankrupt, which meant that 75 stores had to close and 489 jobs were lost.
Administrators said they agreed to an “exclusivity agreement” after “a competitive bidding process.” This implies a rescue takeover led by former Molton Brown CEO Charles Denton will proceed. A group of people led by investment platform Aurea Group signed the deal.
A British millionaire named Mike Jatania runs Aurea. He was also a top executive at the Swiss investment bank UBS.
They said in a statement that it was “the best outcome for creditors” and that the group’s experience would “ensure the long-term success of The Body Shop.”
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What’s next?
In charge of the deal said they want to finish it “in the coming weeks,” but the deal hasn’t happened yet.
They also said that due diligence checks would now happen.
As time went on, people began to wonder what would happen to the business.
Sky News reported that Next had talked to managers about buying a piece of the chain. There were also plans to start a company voluntary arrangement (CVA) in which The Body Shop would talk to its creditors.
The administrators were heartened by how many people were interested in bidding on The Body Shop.
Nearly 50 years ago, the late Dame Anita Roddick and her husband Gordon opened The Body Shop.
FAQs
The millionaire is Mike Jatania, who leads the investment firm Aurea. The deal is sponsored by a partnership led by Aurea, therefore Jatania may not fund it alone.
The company had recently entered administration, a form of insolvency in the UK. This means the company was struggling financially and unable to pay its debts. The administration process involves administrators taking control of the company to try and find a buyer or otherwise manage its affairs.
