According to reports, The Body Shop, a prominent UK-based cosmetics company renowned for its natural, sustainable, and cruelty-free products, has shut down its operations in the United States, and initiated the closure of many store locations across Canada after filing for bankruptcy.
After a formal announcement earlier this month, The Body Shop stated that its US subsidiary stopped operations on March 1. The company also revealed plans to commence liquidation sales at 33 out of its 105 stores in Canada with immediate effect.
Though online sales on Canada’s e-commerce store will stop, all Canadian locations will remain open for the mean time.
The decision to cut down on operations came during a challenging retail landscape worsened by high inflation in recent years. Traditional retailers, especially those operating in malls and offering services to the middle class, have encountered significant pressures, including The Body Shop.
The Body Shop was founded in 1976 by human rights activist and environmental campaigner, Anita Roddick. The brand gained recognition fast for its commitment to ethical practices which included a steadfast ban on animal testing for its products. the brand was acquired by L’Oreal in 2006 and was later sold to Brazilian company Natura in 2017.
The company achieved B Corp certification in 2019, highlighting its dedication to transparency and environmental conscientiousness.
Despite its global reach, with more than 2,500 retail locations in over 80 countries and a vibrant online presence, The Body Shop has encountered challenges in recent years and has found it difficult to maintain its foothold in the market.
The Body Shop encountered a year-over-year decline of 13.5 percent in 2022, raising concerns over its long-term viability. Covid-19 pandemic’s impact, which initially increased direct-to-consumer channels, later normalized, contributing to a drop in sales figures.
The Body Shop was sold in November 2023 to asset management group, Aurelius, for around $266 million. The challenges however persist, resulting in the recent decision to restructure its operations in North America amid financial difficulties.
