The UK-based cosmetics company, The Body Shop, has announced the closure of all its US-based operations, including the shutdown of dozens of Canadian store locations, after filing for bankruptcy, as reported by CNN.
Earlier this month, The Body Shop officially declared that its US subsidiary was no longer operational, effective March 1. Additionally, 33 out of its 105 stores in Canada will initiate liquidation sales immediately, with online sales via Canada’s e-commerce store coming to a halt. However, all Canadian locations will remain open for the time being, according to CNN.
Reports indicate that high inflation in recent years has adversely affected traditional retailers, especially those like The Body Shop, predominantly operating out of malls and catering to the middle class.
Founded in 1976 by human rights activist and environmental campaigner Anita Roddick, The Body Shop was known for marketing products as natural, sustainable, ethical, and cruelty-free. It gained recognition as one of the first companies to prohibit animal testing for many of its products.
In 2019, the company achieved certification as a “B Corp,” signifying adherence to transparency and environmental conscientiousness standards. By 2023, it had expanded to over 2,500 retail locations in more than 80 countries and was available for online purchase in over 60 markets.
Despite changing ownership multiple times, including acquisitions by L’Oreal in 2006 and later by Brazilian company Natura in 2017, The Body Shop faced financial challenges and declined in recent years. Natura reported a year-over-year decline of 13.5 percent in 2022, describing the year as challenging for the brand, especially with the return of direct-to-consumer channels to pre-pandemic levels.
In late 2023, The Body Shop was sold to asset management group Aurelius for approximately USD 266 million, marking a new chapter in the brand’s history.
