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The Body Shop has been rescued from administration, in a deal that appears to secure the immediate future for 1,300 shop and office workers.

A consortium led by the British cosmetics tycoon Mike Jatania has acquired the ethical beauty brand's 113 UK stores which remain trading, for an undisclosed sum.

The specialist investment firm Auréa Group will also gain control of the Body Shop's assets in Australia and North America, in a deal which was finalised late on Friday.

Mr Jatania described the Body Shop as "a truly iconic brand" popular in over 70 markets around the world.

"We plan to focus relentlessly on exceeding their expectations by investing in product innovation and seamless experiences across all of the channels where customers shop," he said.

Announcing the deal, Auréa Group said it has "no immediate plans" to shut stores but that it would monitor the footprint of the estate over the coming months as it tries to manage costs.

The Body Shop was founded in Brighton in 1976 by the late environmental and human rights campaigner Dame Anita Roddick.

What began as a single shop in the seaside town quickly grew into a global brand known for its beauty offer, perfumes and ethical stance against animal testing.

Dame Anita and her husband Gordon sold the business to French beauty giant L'Oreal in 2006. Since then it has changed hands twice, including for as much as a reported one billion euros, amid fierce competition from other natural beauty brands like Lush and Rituals.

The private equity firm Aurelius paid £207m for The Body Shop in late 2023, but in February this year admitted it could not revive its fortunes and placed the UK arm into administration. It owed more than £276m to creditors at the time.

FRP Advisory has since closed 85 stores, while almost 500 shop jobs and at least 270 office roles have been axed.

There were more than 75 expressions of interest to take over the ailing chain, reportedly including Next and Marks and Spencer, but after months of negotiations, Auréa announced that it had finally closed the deal.

With 35 years of experience in the industry, Mike Jatania will serve as Executive Chairman, it said. The former Chief Executive of Molton Brown, Charles Denton, will take over the helm as CEO.

"I am truly excited to lead this brand which I have admired for many years," Mr Denton said.

He added that "bold action" would be required to achieve a "sustainable future".

Steve Baluchi, Director at FRP Advisory, said the company's "experienced new owners" had a track record of successful retail turnarounds and that they recognised the brand's value.