The Body Shop has ceased its U.S. operations and is closing dozens of stores in Canada as part of wider restructuring proceedings, following deepening financial struggles. The U.K.-based retailer has appointed insolvency administrators and plans to shutter 82 of its 198 stores in the U.K. The brand's Canadian subsidiary has commenced liquidation of 33 closing stores and has filed for a notice of intention pursuant to the country's Bankruptcy and Insolvency Act. The closures come after the brand was sold to Aurelius, a private equity firm, late last year in a deal valued at $261 million.
The Body Shop is closing its U.S. stores and filing for Chapter 7 bankruptcy, with plans to liquidate assets to pay off creditors. The U.K.-based beauty chain had also filed for restructuring in the U.K. and Canada, with some stores in those countries remaining open. The company, which was acquired by L'Oréal in 2006 and then a private equity group in December, faced financial challenges and a difficult retail environment before collapsing in February.
The Body Shop, a UK-based skincare and cosmetics chain, has filed for bankruptcy in the United States, leading to the closure of all its US locations and the planned closure of dozens of stores in Canada. The company's US subsidiary ceased operations on March 1, while its Canadian subsidiary is evaluating strategic alternatives and beginning liquidation sales at 33 of its 105 stores. The move comes after the company faced financial difficulties in the UK earlier this year, following poor Christmas sales.
The Body Shop's UK business has entered administration, potentially risking up to 2,000 jobs, marking a stark contrast to its heyday in the 1980s when it was phenomenally popular and listed its shares on the London Stock Exchange, valuing the company at £80m. The founder, Dame Anita Roddick, discussed the company's success in a 1984 interview, and for many in the 1980s and 1990s, The Body Shop was a beloved and popular brand.
The Body Shop's UK business has entered administration, potentially endangering up to 2,000 jobs, as restructuring firm FRP seeks to secure the future of the retailer. The brand, founded in 1976, has faced financial challenges under past owners and has now been placed into administration after poor sales during the Christmas period. Efforts will be made to save the UK firm, with a focus on creating a more financially stable business, but job cuts and cost reductions are expected as the administrators consider all options to move the business forward.
The Body Shop, once a trailblazer in ethical trading and cruelty-free beauty, is facing a crisis as its UK side is placed into administration due to poor sales and working capital issues. The brand, which was once a mecca for natural and sustainable products, has struggled to evolve and compete with newer rivals in the beauty industry such as Lush and Rituals. The company's frequent changes in ownership and failure to adapt to changing consumer preferences have contributed to its decline, leading to potential store closures and job losses.
The Body Shop's UK business is expected to appoint administrators this week, leading to potential shop closures and job losses. The move comes after the company's owner, private equity firm Aurelius, decided to significantly restructure the retailer due to weaker than expected Christmas trading and insufficient working capital. The brand, known for its ethical ethos, has changed hands multiple times since its founder's sale to L'Oreal in 2006, with hopes of revitalizing the business and competing with brands like Lush.
Brazilian cosmetics company Natura has agreed to sell The Body Shop to private equity firm, The Carlyle Group, for £207mn ($265mn). Natura acquired The Body Shop in 2017 for £880mn ($1.1bn) but has struggled to turn around the struggling brand. The sale is part of Natura's strategy to focus on its core business and reduce debt.
Brazilian cosmetics maker Natura &Co is considering the sale of its subsidiary, The Body Shop, as part of its efforts to improve profitability. The company's board of directors has authorized the search for "strategic alternatives," including a potential sale of the business. Natura recently sold its luxury brand Aesop to L'Oreal and has been focusing on discipline and deleveraging to bring back profitability. Analysts believe that a sale of The Body Shop could positively impact Natura's bottom line in the future.
Brazilian beauty conglomerate Natura & Co is considering a potential sale of The Body Shop after the skincare and cosmetics brand experienced declining sales for several quarters. Natura & Co, which owns Avon and Natura brands, has authorized its management to explore strategic alternatives for The Body Shop, including a potential sale. The brand has faced challenges in meeting customer demands and adapting to changing consumer habits during the pandemic. To revive sales, The Body Shop has focused on boosting digital sales and revamping its product line to prioritize skincare.
