The former chief executive of Molton Brown is spearheading a rescue of The Body Shop, which collapsed into administration earlier this year.
The vegan beauty chain’s administrators confirmed on Wednesday it had entered an exclusivity agreement with investment group Auréa, which is co-founded by entrepreneur and beauty tycoon Mike Jatania.
The group is led by ex-Molton Brown CEO Charles Denton, who is credited with leading the turnaround of the beauty chain from the brink of collapse to a £170m business.
It is understood that the retailer’s potential new owners are planning to retain all of its existing UK shops.
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A joint statement from the administrators of The Body Shop International and Auréa group said: “Following a competitive bidding process, the joint administrators of The Body Shop International have now entered into an exclusivity agreement with a consortium led by Auréa group, with the management team to be led by former Molton Brown CEO Charles Denton.
“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 added.
It was reported last week that entrepreneur Mike Jatania had entered discussions with administrators. The beauty tycoon previously built a portfolio of personal care brands such as Harmony hairspray, Lipsyl lip salve and Yardley perfume through his family company Lornamead. He sold Lypsyl to rival Li & Fung back in 2013 for nearly £156m ($200m).
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