Space NK owner kicks off sale process for beauty chain

Space NK owner Manzanita Capital has launched a formal sale process for the beauty chain, over a year after appointing bankers to auction the business.

Prospective bidders have been approached in recent weeks, according to Sky News. A deal is expected to fetch between £300 million and £400 million.

Manzanita, which has owned Space NK for more than 20 years, is not expected to sanction a sale unless it receives an attractive offer.

It comes after the company appointed bankers at Raymond James last April to handle an auction sale of the British beauty retailer.

Manzanita also previously explored a sale of Space NK in 2018, hiring Goldman Sachs to conduct a strategic review, but opted not to proceed with a deal.

Established in 1991, Space NK - which is named after founder Nicky Kinnaird's initials - first opened its doors in Covent Garden in 1993.

In recent years, the beauty giant has continued to invest in its stores, operations, technology and customer acquisition, while also onboarding an abundance of new and trending brands, from Kosas and Emma Lewisham to Laneige and Then I Met You.

The retailer recently confirmed the upcoming opening of a new flagship at London's Oxford Circus, introducing a purpose-built beauty experience concept to meet the wants and needs of its customers.

Taking the unit currently housed by Ikea's Hus of FRAKTA, the new store will feature a selection of new brands, exclusive product launches and familiar favourites, allowing customers to explore the "very best of beauty".