The Body Shop buyer lines up financing as it finalises rescue deal

The expected buyer of The Body Shop is in advanced talks to secure new financing as it finalises a rescue deal to buy the chain out of administration.

British tycoon Mike Jatania’s investment firm is looking to secure working capital of more than £30 million from Hilco Capital, according to Sky News.

Sources told the publication that the deal between Aurea and FRP Advisory, The Body Shop's administrators, was likely to be finalised within days.

If confirmed, the new debt from Hilco Capital would be used to help place the beauty business back on a growth footing, the sources added.

Aurea entered exclusive talks with FRP Advisory back in July, with former Molton Brown Chief Executive Charles Denton, who leads the British investment firm, visiting The Body Shop's HQ in Littlehampton.

"It’s 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," Denton said in a statement at the time.

The Body Shop entered administration in February, resulting in the closure of 82 stores and 489 job cuts across the UK. It had employed around 1,500 store workers before the administration.

The business was founded in 1976 by Dame Anita Roddick as one of the first companies to promote so-called ethical consumerism, focusing on ethically produced cosmetics and skincare products.