The Body Shop rescued from administration after deal

LONDON

Growth capital firm Aurea has announced the completion of its acquisition of U.K.-based cosmetics group The Body Shop.

The 50-year-old business entered administration in February, which led to FRP Advisory being brought in to try to salvage part of the group.

Soon after, The Body Shop announced it would shutter almost half of its 198 stores in Britain. On collapsing, it employed about 1,500 staff across its U.K. stores, and a total 7,000 worldwide.

"This investment demonstrates Aurea's focus on backing purpose-led and differentiated brands in the Beauty, Wellness and Longevity sector and represents its largest transaction to date," Aurea said in a statement.

Remaining stores are expected to continue trading under the new deal.

German private equity firm Aurelius had bought The Body Shop in November, but the retailer ran into trouble in a tough economic climate over the key Christmas trading period.

The Body Shop was founded in 1976 by Anita Roddick and has become a staple of the British high street, but it has been under various owners since she sold it to French cosmetics giant L'Oreal in 2006.

Roddick, who died in 2007 from a brain haemorrhage, rapidly expanded the business from modest beginnings with a determination to offer products that had not been tested on animals.

She also set out to make her business environmentally friendly, with customers encouraged to return empty containers for refilling at the original shop in Brighton on England's south coast.

Mike Jatania and Charles Denton will serve as executive chairman and CEO respectively.