One of the UK’s best-known beauty retailers that specialises in high-end skincare and cosmetics products is officially up for sale in another threat to the country’s diminishing high streets. 

Space NK’s private equity owner, Manzanita Capital, has formally launched a sale process, more than a year after it appointed investment bankers to explore strategic options. In the last few weeks, the company has approached potential buyers and the business could fetch a price tag between £300 million and £400 million, reports Sky News. 

Manzanita has owned Space NK for over 20 years. It brought in bankers from Raymond James last April to oversee the auction process.

However, the firm is not expected to proceed with a deal unless a compelling offer materialises.

Established in 1993 by Nicky Kinnaird, Space NK - named after her initials - operates from numerous stores and has a workforce of over 1,000 employees.

This is not the first time that Manzanita has tested the market. In 2018, a similar attempt led by Goldman Sachs, ended without a sale. Despite the uncertainty, recent financial results suggest Space NK is in a strong position.

According to filings at Companies House, the retailer’s EBITDA (earnings before interest, taxes, depreciation and amortisation) almost tripled to £6 million in the year to March 2023 — a sign that the business is thriving even amid a challenging retail landscape, reports Yorkshire Post.

The stores struggling with low sales or profitability might face potential closures, especially as the beauty industry increasingly moves toward online shopping and retail experiences that focus on interaction rather than traditional product displays.

If closures occur, they will likely impact smaller-town locations or stores where multiple outlets serve the same area.

High-performing flagship stores in major cities, which tend to generate more revenue and attract more customers, are less likely to be affected, the report claims. 

Express.co.uk has reached out to SpaceNK for a comment.