The Body Shop, a UK-based cosmetics company renowned for its natural, sustainable, and ethical products, has ceased its operations in the United States and is closing numerous stores in Canada as it files for bankruptcy.
In a recent news release, the company announced the closure of its US subsidiary, effective March 1. Additionally, it disclosed that 33 out of its 105 stores in Canada will undergo liquidation sales, with online sales through Canada’s ecommerce platform also ceasing. Despite these closures, all Canadian locations will remain open for the time being.
The decision comes amid challenging times for traditional retailers, exacerbated by high inflation rates in recent years, particularly impacting companies like The Body Shop that primarily operated within malls and catered to the struggling middle class.
Founded in 1976 by Anita Roddick, a human rights activist and environmental campaigner, The Body Shop gained recognition for its commitment to cruelty-free products and ethical practices. It expanded significantly over the years, reaching more than 2,500 retail locations across 80 countries by 2023, with a strong online presence in over 60 markets.
Despite its early success, The Body Shop has faced turbulence, changing ownership multiple times. After being acquired by L’Oréal in 2006 for over a billion dollars, it was subsequently sold to Brazilian company Natura in 2017 for a similar amount. However, the brand has struggled in recent years, with Natura reporting a significant decline of 13.5% in 2022, attributing the challenges to various factors including the impact of the pandemic on sales channels.
In late 2023, The Body Shop was sold to asset management group Aurelius for approximately $266 million, marking another chapter in its tumultuous history.