The owner of high-end beauty retailer Space NK has initiated a formal sale process after appointing bankers last year to auction the chain.

Manzanita Capital, which has owned Space NK for more than two decades, has begun circulating teasers to potential bidders in recent weeks, according to Sky News. The sale is expected to fetch between £300 million and £400 million. The firm also owns French perfume house Diptyque and Austrian luxury skincare brand Susanne Kaufmann

The private investment firm engaged bankers at Raymond James to oversee the auction in April 2024, despite concerns about consumer confidence in an uncertain UK economy. Sources indicate that Manzanita will not proceed with a sale unless it receives an attractive offer.

"One party contacted about a potential bid said the business appeared to be in good financial health," Sky News reported. This is supported by Companies House filings which show that the beauty retailer's EBITDA nearly tripled to £6 million in the year to 25 March 2023.

This is not the first time Manzanita has explored selling Space NK. In 2018, the firm hired Goldman Sachs to conduct a strategic review but ultimately decided against proceeding with a sale.

Founded by Nicky Kinnaird in 1991, Space NK – named after the founder's initials – first opened its doors in Covent Garden in 1993. The chain now trades from numerous stores and employs more than 1,000 people, specialising in high-end skincare and cosmetics products.

In recent years, Space NK has continued to invest in its stores, operations, technology and customer acquisition, while also bringing on board new and trending brands including Kosas, Emma Lewisham, Laneige and Then I Met You.

Earlier this year, the retailer confirmed plans to open a new flagship store at London's Oxford Circus, introducing a purpose-built beauty experience concept. The new location will feature a selection of new brands, exclusive product launches and familiar favourites.

---