Beauty Bay has been sold to AA Investments Group through a pre-pack administration arranged by Interpath, securing the future of the UK online beauty retailer after mounting cost pressures and weak consumer confidence forced it to seek insolvency protection.
Administrators Rick Harrison and James Clark of Interpath completed the sale of the Manchester-based company and its assets shortly after their appointment on 6 March, transferring 62 employees to the new owner as part of the transaction.
The buyer, AA Investments Group, is a French-owned investment firm focused on operating companies in luxury, e-commerce and beauty. Beauty Bay co-founder Arron Gabbie will remain with the business for a short period to support the transition to its new ownership.
Founded in 1999 by brothers Arron and David Gabbie, Beauty Bay grew into a major UK online cosmetics retailer, selling more than 200 brands alongside its own-label range through its digital platform. The company serves more than five million customers and built a strong reputation for stocking emerging beauty labels and “cult” products.
Retail Gazette reported that the retailer had been under sustained pressure from cost inflation, policy uncertainty and subdued consumer confidence, challenges that have affected many businesses across the UK retail sector. The company had been reviewing strategic options before filing a notice of intention to appoint administrators last month.
Rick Harrison, managing director at Interpath and joint administrator, said the deal would allow the brand to continue trading under new ownership. “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,” he said.
Arron Gabbie thanked staff for their support during the process. “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,” he said, adding that their “commitment and support over the last 27 years have been unwavering”.
