The Physique Store has been saved from administration in a rescue deal led by cosmetics tycoon Mike Jatania, securing 113 shops and safeguarding greater than 1,000 jobs.
The previous Molton Brown chief, Charles Denton, will take the helm as chief government beneath the brand new possession.
The deal, facilitated by directors at FRP, includes the sale of The Physique Store to a consortium headed by Jatania’s funding firm, Aurea. The settlement follows weeks of unique negotiations and goals to stabilise the enterprise, which at present employs 1,300 individuals. Whereas there are not any quick plans to shut further shops, the brand new house owners could discover relocating some branches to extra advantageous places in varied cities and cities.
The Physique Store’s journey into administration started earlier this yr after its sale to non-public fairness agency Aurelius for £207 million final November. The sale got here at a valuation considerably decrease than the €1 billion (£870 million) that earlier proprietor Natura had paid in 2017. The retailer’s monetary troubles had been exacerbated when HSBC withdrew a line of credit score, and Aurelius didn’t safe different funding, resulting in the closure of greater than 80 shops.
Regardless of being listed as The Physique Store’s high creditor, Aurelius was not the last word purchaser. As an alternative, an public sale attracted a number of bidders, together with Mr Jatania’s Aurea and Gordon Brothers, the turnaround specialist led by former Mothercare boss Mark Newton-Jones. Aurea described the acquisition as its “largest transaction to this point,” though particulars of the funding weren’t disclosed.
Aurea expressed a dedication to rebuilding The Physique Store and restoring its place as a pacesetter within the moral magnificence sector—a promote it pioneered beneath the steering of founder Anita Roddick. Launched in 1976, The Physique Store was a trailblazer within the moral cosmetics house, recognized for its pure merchandise and dedication to not testing on animals, setting a normal that has since been adopted by different retailers like Lush and Rituals.
Below Aurea’s possession, Jatania has pledged to put money into new, modern merchandise and improve the in-store expertise, whereas sustaining the model’s moral and activist roots. He’ll tackle the position of government chairman, with Charles Denton steering the enterprise as CEO. Jatania, who has a historical past of revitalising uncared for beauty manufacturers, beforehand offered the maker of Lypsyl lip balm for practically $200 million (£156 million) in 2013.
Denton acknowledged the challenges forward, stating, “We recognise that revitalising the enterprise would require daring motion and a consumer-centric, commercially agile mindset. We imagine there’s a sustainable future forward and dealing intently with the administration workforce, we purpose to revive The Physique Store’s distinctive, values-driven, impartial spirit.”
FRP’s Steve Baluchi praised the brand new house owners, highlighting their “lengthy observe document of profitable retail turnarounds” and confidence within the enduring worth of The Physique Store’s family identify and legacy. With this rescue deal, The Physique Store’s future seems to be set for a brand new chapter of restoration and progress within the moral magnificence market.