Manchester-based online beauty retailer Beauty Bay has hired Interpath to explore its strategic options, including a potential sale or new investment. The company, founded in 1999, sells over 200 brands and its own-label range, By Beauty Bay, to an estimated five million customers. It employs around 65 staff.
This review comes as UK retailers face significant headwinds from inflation and cautious consumer spending. Beauty Bay, which reportedly sought a buyer or investment partner in 2022 without success, needs capital to stabilise operations and fund expansion, particularly for its own-brand offering.
The business operates in a highly competitive online beauty market. While the exact reasons for seeking external capital are not detailed, the pressure on consumer discretionary spending likely plays a role. The need for investment to fuel growth suggests a gap between current resources and future ambitions, especially as the company aims to broaden its own-label portfolio.
