The expected purchaser of The Body Shop is in advanced discussions to secure new financing as a deal nears.
Cosmetics entrepreneur Mike Jatania’s Auréa investment business aims to secure working capital of approximately £30m from Hilco Capital, Sky News has reported.
Auréa’s acquisition of The Body Shop out of administration is expected to be finalised in the coming days.
The borrowing from Hilco would enable The Body Shop to prepare to grow again.
Restructuring and financing specialist Hilco has long been active in retail. It recently organised financing for fashion retailer Superdry and backs home enhancement group Homebase, which is at present seeking a new buyer.
The Body Shop, which was a trailblazer in sustainable and ethical retail, plunged into administration in February, shortly after being bought by private equity house Aurelius.
Administrator FRP Advisory subsequently launched an auction for the business after deciding alternative options would not be viable.
Following store closures and redundancies, The Body Shop now operates about 100 branches.
Before its sale to Aurelius late last year, The Body Shop was owned by Brazilian beauty giant Natura & Co, which paid approximately $1bn for it in 2017.
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