Aurea Group and Hilco Capital Team Up to Save Struggling Cosmetic Chain

  • The Body Shop’s new owners are in talks to secure £30m+ working capital from Hilco Capital
  • Aurea Group entered an exclusivity agreement with The Body Shop’s administrators, FRP Advisory
  • Hilco Capital financed Superdry and is a regular financier for retailers
  • Aurea Group invests in brands embracing new consumer trends
  • The Body Shop collapsed into administration three months after a £207m takeover deal with Aurelius
  • FRP Advisory closed 82 stores, resulting in job losses of around 489

The new owners of The Body Shop are in advanced talks with Hilco Capital to secure more than £30 million in working capital as they finalize a deal to buy the cosmetic chain out of administration, according to Sky News. This comes after Aurea Group entered into an exclusivity agreement with administrators FRP Advisory. Banking sources told Sky News that the deal between Aurea and FRP would be finalized within days, and the financing from Hilco would be used to ‘help place the cosmetic chain on a growth trajectory.’ Aurea is known for investing in brands that ‘have embraced new consumer trends’ and is led by Mike Jatania, Paul Raphael, and Andrew Vagenas. The Body Shop collapsed into administration just three months after agreeing to a £207 million takeover deal with Aurelius, which was unable to revive the company’s fortunes due to underwhelming trading during the crucial Christmas and New Year period. In February, German buyout firm Aurelius appointed FRP Advisory as administrator following The Body Shop’s collapse in the UK. Administrators at FRP closed 75 of the group’s worst-performing stores, resulting in job losses of around 2,200. So far, The Body Shop has closed 82 stores as part of a restructuring launched after its business collapse, leaving it with 116 stores and 489 fewer jobs.

Factuality Level: 7
Factuality Justification: The article provides accurate information about The Body Shop’s financial situation, the involvement of Auréa Group and Hilco Capital, and the closure of stores due to administration. However, it lacks some details on the specific terms of the deal and the reasons behind the collapse.
Noise Level: 3
Noise Justification: The article provides relevant information about The Body Shop’s financial situation and the potential acquisition by Auréa Group, but it lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: The Body Shop’s administration and potential sale impact the retail sector and related companies
Financial Rating Justification: The article discusses The Body Shop’s financial situation, its collapse into administration, and a potential sale to Auréa Group with financing from Hilco Capital. This pertains to financial topics and impacts the company itself as well as related businesses in the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

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