Paris Beauty Spa, the upscale Parisian beauty boutique with over 100 employees, has closed its doors and is now owned by a private equity firm.
Sara Beauty Salon has a long history in the Parisian city, but its fate was sealed last month when Parisian authorities approved the sale of the company to a private investment group.
The sale of Sara Beauty Salon was announced in a statement from the Paris Investment Authority on March 21, but did not specify the size of the transaction.
In the statement, Paris Investment said it was willing to finance the sale at “a fair price.”
Safeway, the largest fast-food chain in the U.S., also owns Sara Beauty Spa.
According to Reuters, the purchase of Sara Salon comes after Safeway bought two other Parisian luxury brands last year for around $18 billion.
Since its launch in the late 1990s, Sara Beauty has attracted millions of visitors in Paris and its surrounding areas.
A new website has been launched to promote the sale.
“This is a major milestone in the rebirth of Paris’ luxury brands,” Paris Investment board member Philippe Chateaubriand said in the statement.
“The sale brings together a unique group of investors who have a unique understanding of Paris, and will allow us to transform the Paris Beauty Mall and create a new brand in the hearts and minds of Parisian consumers.”
The company had previously struggled financially.
Paris Investment said in March that the sale would result in an operating loss of “at least €30 million,” though the actual loss could be much higher.
“The sale also demonstrates the strategic direction of Paris Investment, a new investment fund with a proven track record of investment success,” Chateabriand continued.
“In the process, it also demonstrates Paris’ commitment to diversification.”
While the sale may seem unlikely, the deal with Paris Investment has the potential to change Paris for the better.
Since 2007, Paris has become a global hotspot for luxury retail.
“The acquisition of Sara has transformed Paris into a world-class destination for luxury shopping, which we have been working hard to achieve,” said Paris Investment president and CEO, Pierre-Henri Lefebvre.
“With the acquisition of the spa, we are creating an attractive, high-end destination for shoppers in Paris.”