Space NK: UK luxury beauty chain faces uncertain future as its put up for sale - are stores near me closing?

• Luxury beauty retailer Space NK, is officially up for sale after over a year of exploration
• The sale could fetch between £300 million and £400 million
• Despite the uncertainty, the retailer’s financial performance has improved
• But potential store closures could be on the table, especially for underperforming locations
• The future of Space NK’s store network depends on the any buyer’s strategy

A UK luxury beauty retailer is officially up for sale, sparking speculation about the future of its high street presence and whether store closures could be on the horizon.

More than a year after appointing investment bankers to explore strategic options, Space NK’s private equity owner, Manzanita Capital, has formally launched a sale process.

According to Sky News, potential buyers have been approached in recent weeks, and the business could fetch a price tag between £300 million and £400 million.

Manzanita Capital, which has owned Space NK for over two decades, brought in bankers from Raymond James last April to oversee the auction process. But the firm is not expected to proceed with a deal unless a compelling offer materialises.

(Photo: Clodagh Kilcoyne/Getty Images for Space NK) | Clodagh Kilcoyne/Getty Images for Space NK

This isn’t the first time Manzanita has tested the market — a similar attempt in 2018, 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.

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Will Space NK stores close?

While there is no official word yet on potential store closures, any new owner is likely to take a close look at the brand’s physical retail footprint.

Underperforming or less profitable stores could be at risk, particularly as the broader beauty sector continues its shift towards online sales and experiential retail.

If closures do happen, they’re likely to affect stores in smaller towns or locations with overlapping coverage, rather than flagship or high-performing outlets in major cities.

The outcome will depend largely on who buys the business and what their long-term vision for the brand entails — whether it’s expansion, streamlining, or a digital-first strategy.

For now, customers can continue shopping as usual. But as the sale process unfolds, the future of Space NK’s store network — and its identity as a luxury beauty destination — hangs in the balance.

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