UK-based leading cosmetic company, The Body Shop has now declared the closure of all its operations in the United States and impending shutdowns of numerous stores in Canada as it grapples with bankruptcy proceedings.
US subsidiary of The Body Shop ceased operations w.e.f. March 1
According to the CNN reports, the Company disclosed through a recent press release that its US subsidiary ceased operations effective March 1. Additionally, 33 out of its 105 stores in Canada will soon undergo liquidation sales, with online sales through Canada’s e-commerce platform set to be discontinued. While Canadian locations will continue to operate temporarily, the brand faces formidable challenges in North America.
Interestingly, The Body Shop was established by Human Rights Activist and environmentalist campaigner Anita Roddick. The company has garnered acclaim for its natural sustainable ethical and cruelty-free products. It was among the earliest companies to champion the cause against animal testing setting a precedent in the cosmetics industry.
The Body Shop spready over 2500 retail outlets across 80 countries
In the year 2019, The Body Shop attained “B Corp” certification underscoring its commitment to transparency and environmental stewardship over 2500 retail outlets across 80 countries with its products available for purchase online in more than 60 markets.
Furthermore, Despite changes in ownership, including L’Oréal’s acquisition in 2006 and subsequent sale to Natura in 2017, the company remained steadfast in its dedication to ethical practices and environmental principles.
The Body Shop faced significant “headwinds
However, in recent years the company has witnessed challenges and a downturn in performance for the brand. According to a 2023 report from Natura, The Body Shop faced significant “headwinds,” experiencing a year-over-year decline of 13.5% in 2022. In late 2023, the brand was sold to the asset management group Aurelius for approximately USD 266 million.
With the closing of operations in the United States and Impending store closure in Canada mark a significant setback for The Body Shop. As the company moves with bankruptcy proceedings, its future remains uncertain, leaving loyal customers and stakeholders awaiting further developments with bated breath.
