The Physique Store’s remaining UK retailers saved after Auréa Group deal inked
The dad or mum firm of The Physique Store within the UK has been acquired out administration by Auréa, a development capital agency led by the British cosmetics tycoon Mike Jatania. The monetary particulars of the operations haven’t been disclosed.
Auréa Group, which has three different magnificence manufacturers – Herbivore Botanicals, Scandinavian Biolabs and Dcypher – in its portfolio, may even achieve management of the Physique Store’s property in Australia and North America.
“A really iconic model”
“This funding demonstrates Aurea’s deal with backing purpose-led and differentiated manufacturers within the Magnificence, Wellness and Longevity sector and represents its largest transaction up to now,” the personal fairness agency stated in an announcement.
Because it was introduced in July, Mike Jatania and Charles Denton will function govt chairman and CEO respectively.
“With The Physique Store, we’ve got acquired a very iconic model with extremely engaged shoppers in over 70 markets around the globe,” stated British tycoon and Aurea co-founder Jatania.
“We plan to focus relentlessly on exceeding their expectations by investing in product innovation and seamless experiences throughout all the channels the place clients store whereas paying homage to the model’s moral and activist positioning.”
The Physique Store new chief govt Charles Denton added: “We recognise that revitalising the enterprise would require daring motion and a consumer-centric, commercially agile mindset. We consider there’s a sustainable future forward and dealing carefully with the administration crew we purpose to revive The Physique Store’s distinctive, values-driven, unbiased spirit.”
Nevertheless, the 113 remaining shops are anticipated to proceed buying and selling underneath the brand new deal.
A number of months of uncertainty
This acquisition concludes months of uncertainty and concern in regards to the 50-year-old enterprise entered administration in February.
The Physique Store, which then employed 7,000 folks worldwide, together with 2,200 within the UK, introduced the closure of greater than 80 of its 198 UK shops and greater than 750 job cuts within the nation. On the similar time, a number of subsidiaries around the globe have been closed down altogether.
The Physique Store was based in 1976 in Brighton (south of England) by British entrepreneur Anita Roddick. The visionary founder, who died in 2007, quickly expanded the enterprise from modest beginnings with a dedication to supply merchandise that had not been examined on animals. She additionally got down to make her enterprise environmentally pleasant, with clients inspired to return empty containers for refilling.
L’Oréal purchased the model in 2006 for round 940 million euros, when it was on the top of its fame, earlier than promoting it in 2017 to the Brazilian group Natura. Extremely in debt after having additionally acquired Avon in 2019 and hit laborious by the rise in rates of interest, Natura offered The Physique Store on the finish of 2023 for a fifth of the value paid to L’Oréal.
Over the 12 months The Physique Store had change into a staple of the British excessive road and was acquired by L’Oréal in 2006. The French cosmetics big then offered it in 2017 to Brazil’s Natura. Nevertheless, the South American magnificence group then went on to purchase Avon in 2019, a badly timed deal that left it with a hefty debt pile because the Covid pandemic hit after which rates of interest started to rise around the globe.
German personal fairness agency Aurelius had purchased The Physique Store in November, however the retailer bumped into hassle in a tricky financial local weather over the important thing Christmas buying and selling interval.
