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The new owners of The Body Shop are in advanced talks to secure more than £30m in working capital from Hilco Capital as they finalise a deal to buy the chain out of administration, according to Sky News.
The news comes after businessman Mike Jatania’s consortium, Auréa Group, officially entered into an exclusivity agreement with the administrators of The Body Shop, FRP Advisory.
Banking sources have told Sky News that the deal between Aurea and FRP was to be finalised within days, and that the financing from Hilco would be used to “help place the cosmetic chain on a growth trajectory”.
Hilco recently also financed Superdry and is a regular bidder for and financier to retailers.
Aurea is known for investing in brands that “have embraced new consumer trends”, and is led by Jatania along with Paul Raphael and Andrew Vagenas.
The Body Shop collapsed into administration February, just three months after Aurelius agreed a £207m takeover deal.
It was understood that the private equity firm was unsuccessful in its plan to revive The Body Shop’s fortunes after underwhelming trading over the crucial Christmas and New Year trading period.
In February, the German buyout company confirmed it had appointed FRP Advisory as administrator following the group’s collapse in the UK.
Administrators at FRP closed 75 of the group’s worst-performing stores, resulting in job losses of around 2,200.
So far in the administration process, The Body Shop closed 82 stores as part of a restructuring that was launched after the business collapse, leaving it with 116 stores and 489 fewer jobs.
Retail Sector has contacted Aurea for comment.
