British cosmetics magnate Mike Jatania nears rescue of The Body Shop

The Body Shop is saved by British tycoon Mike Jatania.

The fate of the beauty retailer has been up in the air since February, when the board ordered the loss of 759 jobs and the closure of 82 stores.

But now cosmetics millionaire Jatania is in talks about a deal through his investment company Aurea.

This has raised hopes that the remaining 116 stores and approximately 1,400 employees will be retained.

According to a statement from Aurea and the administrators of FRP Advisory, a sale is expected in the coming weeks and Jatania has commenced due diligence checks.

There are plans to appoint former boss of shower gel brand Molton Brown, Charles Denton, as CEO.

The statement said: ‘While the deal has not yet been completed, we believe that the combined experience of the consortium, together with that of the current management, will provide the best outcome for the creditors and will ultimately ensure the long-term success of The Body Shop.’

According to the company, the proposed deal is based on a “competitive bidding process.”

Among those speculated to have taken up the gauntlet are Gordon Brothers, the private equity firm behind Laura Ashley. Marks & Spencer and Next are also said to have had a look but decided not to make a bid.

Jatania, 59, previously owned Lornamead, which owned several body care brands including Yardley, Lypsyl and Harmony Haircare.

His partners at Aurea include former UBS banker Paul Raphael and Pharmapacks founder Andrew Vagenas.

But Jatania and Denton face an uphill battle to get Body Shop back on track, which had 198 stores and 2,200 staff in the UK when it went into administration in February.

The demise came almost half a century after Anita Roddick founded the organisation in Brighton in 1976.

She and her husband Gordon sold the company to L’Oréal for £652 million in 2006. A year later, Roddick died of a brain haemorrhage at the age of 64.

Under L’Oréal, production moved to the Philippines and discounts boosted sales.

In 2017 it was bought by Natura & Co, the Brazilian owners of Avon, for £880m. Last November it was sold for a bargain £207m to German private equity firm Aurelius.

In February, executives warned the store base was “no longer viable” after “years of losses” and suggested as many as 100 stores could close.

It closed stores with the highest rents and other bills. These included Bristol, Nuneaton in Warwickshire and Ashford in Kent, and four in London.