Cosmetic chain The Body Shop has signed an exclusive rescue agreement with a consortium led by the Auréa group, Reuters has reported.

Auréa is an investment company founded by British cosmetics tycoon Mike Jatania.

The Body Shop entered administration in February 2024, resulting in the closure of 82 stores and the cutting of 489 retail and 270 office positions.  

Charles Denton, former CEO of Molton Brown, is poised to steer the new management team upon successful completion of the deal. 

Auréa and The Body Shop's administrator FRP Advisory released a joint statement confirming that after a competitive bidding process, Auréa is conducting due diligence. 

The deal is expected to be agreed in the summer of 2024, as reported in the Guardian. 

The joint statement said: "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."  

Founded in 1976 by Anita Roddick, The Body Shop offers ethically produced cosmetic and skincare products.  

After expanding globally, the company’s fortunes later waned, leading to administration after Aurelius, its then-owner, failed to turn around the business despite acquiring it for £207m ($254.32m) in November 2023. 

The Body Shop owed creditors over £276m at the time of entering administration. 

In May 2024, the administrators of the cosmetics chain announced plans to initiate an auction, having concluded that a company voluntary arrangement is not feasible.   

Bloomberg reported in early July that Auréa was nearing a deal after outbidding competitors at auction.