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The boss of The Body Shop\u2019s new buyer revealed last week that the business should emerge from administration in August.<\/p>\n
Former Molton Brown CEO Charles Denton’s optimistic post on LinkedIn came days after the chain’s administrators at FRP confirmed it had entered an exclusivity agreement with investment group Aur\u00e9a.<\/p>\n
While Aur\u00e9a has kept a low profile, the team behind the consortium have an extensive history in the beauty and investment sector.<\/p>\n
That said, The Body Shop will be the firm’s first retail acquisition. Retail Gazette takes a look at the team behind Aur\u00e9a to see whether Britain’s once beloved vegan beauty chain is in safe hands.<\/p>\n
Who is Aur\u00e9a?<\/h2>\n
Aur\u00e9a describes itself an investment platform \u201cfocused on beauty, wellness and longevity\u201d, led by British tycoon Mike Jatania alongside founding partners Paul Raphael and Andrew Vagenas.<\/p>\n
It claims the group is “building a beauty and personal care portfolio by investing in brands that have embraced new consumer trends”. It is also focused on “digitally native, founder-led disruptive brands”.<\/p>\n
The company boasts on its website that it has\u00a0“over 40 years of operational sector experience and a track record of acquisitions in the industry”.<\/p>\n
The Body Shop’s former chief executive David Boynton said on LinkedIn that “it can\u00a0only be good news for the brand”.<\/p>\n
“If the deal is completed as planned, the new owners will bring a history of sensitivity to great British beauty brands and a track record of successful turnarounds. For the millions of loyal customers around the world, the fabulous people that remain in the company and the amazing franchisees and community trade partners, this should all be positive news.”<\/p>\n
Similarly, Fiona Glen, director of projects at beauty consultancy The Red Tree, notes that unlike The Body Shop’s previous owners – Aurelius, Natura and L’Or\u00e9al – where the brand was”a small fish in a big pond”, it will get “a lot more share of voice and focus with this ownership”.<\/p>\n
However, retail search specialist Clarity’s managing partner Fran Minogue explains the biggest challenge for the team will be about finding The Body Shop’s relevancy in the market.<\/p>\n
\u201cThe Body Shop has to figure out whether it wants to be Lush \u2013 fun products, bright colours, appealing to a much younger audience \u2013 or positioned to a more sophisticated consumer alongside Ren and Neal\u2019s Yard,” she says.<\/p>\n
Meet the team<\/h2>\nCharles Denton<\/h3>\n
Aur\u00e9a appointed ex-Molton Brown chief executive Charles Denton to lead the turnaround of The Body Shop.<\/p>\n
It won’t be Denton’s first rodeo as he is credited with leading the turnaround of Molton Brown from the brink of collapse to a \u00a3170m business.<\/p>\n
Posting on LinkedIn, he said last week: \u201cOver the next few weeks, we\u2019ll work together to develop a strategic plan that sets up the business for long-term growth.<\/p>\n
\u201cIf everything plays out as intended, we should emerge from administration in August.\u201d<\/p>\n
He added: \u201cIt\u2019s time to change the narrative around this powerful brand which is loved all over the world. I am optimistic about the future and look forward to what we can achieve together. Will it be tough, absolutely, but we have all the right ingredients to succeed.”<\/p>\n
Denton’s appointment has been welcomed by the sector. Minogue says: \u201cCharles is hugely experienced. He built the Molton Brown business, both wholesale and retail and internationally.\u201d<\/p>\n
“I\u2019m sure [he] can bring the necessary strategic vision and he will need support from strong creative and marketing teams who can bring a fresh vision to the brand and make it relevant.\u201d<\/p>\n
Mike Jatania<\/h3>\n
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Backing Denton is beauty tycoon Mike Jatania, one part of Aur\u00e9a’s founding board.<\/p>\n
Jatania started his career in his family business Lornamead group in 1984, climbing the ranks through the company before becoming chief executive in 1990.<\/p>\n
The group has a history of acquiring and investing in heritage beauty and personal care brands from companies such as Unilever, Sara Lee, Proctor & Gamble, Wella AG and Henkel.<\/p>\n
During his tenure, Lornamead built a portfolio of personal care brands such as Harmony hairspray, Lipsyl lip salve and Yardley perfume. He sold Lypsyl to rival Li & Fung back in 2013 for nearly \u00a3156m ($200m).<\/p>\n
Minogue explains that Jatania is “a very canny investor and knows the sector well”.<\/p>\n
“He set up Aur\u00e9a specifically to look for skincare, beauty, wellness assets. He’ll bring a huge amount of experience – the ability to not only invest but to attract additional investment.\u201d<\/p>\n
Paul Raphael<\/h3>\n
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Joining Jatania is veteran investment banker Paul Raphael, who has worked for some of the world’s top banks, including Merrill Lynch, Credit Suisse, Salomon Brothers, as well as most recently at UBS.<\/p>\n
He spent 11 years at UBS, joining in 2010 and working across several divisions including as head of wealth management before later being promoted to executive vice chair from 2018 to 2021.<\/p>\n
Raphael’s finance expertise will certainly come in handy as it was The Body Shop’s messy balance sheet and lack of funding that pushed it into administration.<\/p>\n
Fiona Glen, director of projects at beauty consultancy The Red Tree, notes that The Body Shop is probably “the most store reliant” of Aur\u00e9a’s investments.<\/p>\n
“There are a lot of costs involved with managing individual stores, stock management and all of that. It’s relevant for any investment, but because of the weight of the store distribution at the moment, it means that the finances really need to be managed carefully, both,” she says.<\/p>\n
Minogue also warns the new owners will need to keep a tight leash on finances: \u201cIn terms of skills, Body Shop needs restructuring and transformation if it is to grow; someone who can take a hard look at cost and not be afraid to cut headcount.”<\/p>\n
Andrew Vagenas<\/h3>\n
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Andrew Vagenas is the final member of Aur\u00e9a’s founding trio and has spent more than a decade leading Amazon’s top reseller, Pharmapacks.<\/p>\n
Vagenas co-founded the company, which resold health, personal care, and beauty products, in 2010 and the business quickly reached $500m in sales through selling on Amazon, Walmart and other US marketplaces.<\/p>\n
While the company eventually filed for bankruptcy in 2022 citing a lack of funding, Pharmapacks was known for its smart go-to-market strategies and competitive pricing.<\/p>\n
Glen explains Vagenas brings the obvious expertise to scale and sell, as well as suggesting his experience with the American market “can come in handy”.<\/p>\n
She adds: “He knows Amazon, and that’s usually a key part of [Aur\u00e9a] looking at an investment. Is there an opportunity to grow it on Amazon? I would suggest there probably is for The Body Shop.”<\/p>\n
Karim Abbas<\/h3>\n
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Also sitting on the team is Karim Abbas, who has spent the last 12 years at L’Oreal.<\/p>\n
Glen notes Abbas is “very involved” with the business and “plugs the beauty gap” after spending time at one of the world’s biggest cosmetic companies.<\/p>\n
He joined L’Or\u00e9al in 2010, holding several positions including zone general manager for Europe, Middle East, Africa and India and looking after brands such as Garnier, Maybelline NY, IT Cosmetics, CeraVe, Skinceuticals, Vichy and La Roche Posay.<\/p>\n
According to Abbas’s LinkedIn, his time at the conglomerate – which owned The Body Shop from 2006 and 2017 – included taking the business “from double digit decline to double digit growth, while growing sustainably at 3X faster than the market and enhancing profitability”.<\/p>\n
He was also responsible for redeveloping the company’s marketing strategy focused on Chinese and European consumers while upgrading retail design and education.<\/p>\n