The future of Beauty Bay has been secured via a sale of the business and its assets via a pre-pack transaction to an international investment group.
The Salford-based online cosmetics retailer filed a notice of intention to appoint administrators in February and took down its website. It continues to show a holding page with the message: “We’ll Be Back Soon. BEAUTY BAY is offline right now, we’ll be back shortly.”
Rick Harrison and James Clark from Interpath were appointed joint administrators to Beauty Bay Limited on 6th March and immediately concluded a sale of the business to French-owned AA Investments Group.
AA Investments specialises in operating companies in the luxury, eCommerce and beauty sectors.
The transaction sees 62 employees transfer to the purchaser. Joint founder, Arron Gabbie, will remain with the business for a short period to facilitate a transition to the new owners.
The company, founded by owners Arron and David Gabbie as Fragrance Bay in 1999, had been seeking a sale or investment in recent weeks with advisory firm Interpath.
The brothers also launched a sale process in 2022, but that did not result in a transaction.
Beauty Bay is one of the UK’s best-known online beauty retailers, selling more than 200 brands alongside its own-label range.
Arron and David Gabbie said: “We would like to say a huge thank you to our brilliant team who have helped to make Beauty Bay everything that it is today.
“Their commitment and support over the last 27 years have been unwavering, no more so than over these past few weeks.”
Beauty Bay reported sales of £78.1 million in the year to 31st March 2024, up from £75.5m in the prior year.
Following a £5.6m loss in 2023, it returned to profitability (£836,000).
Rick Harrison, managing director at Interpath and joint administrator, said: “Since its inception in 1999, Beauty Bay has grown to become one of the UK’s leading online beauty retailers, selling well-known cosmetics and cult brands to over five million customers.
“We’re pleased to have concluded this transaction which will see the brand continue under new ownership, and wish everyone connected with the business all the best for the future.”
The joint administrators were advised by Kuit Steinart Levy LLP (legals) and Gordon Brothers (agents).