Body Shop to Shut Down 33 Stores as It Declares Bankruptcy
The Body Shop Canada Ltd. disclosed its plans to close 33 stores and cease its e-commerce operations as it undergoes restructuring under the Bankruptcy and Insolvency Act.
As of March 1, the Canadian subsidiary of the global cosmetics brand will commence the liquidation of nearly a third of its 105 existing stores.
The exact number of job losses resulting from the store closures across various cities like Toronto, Ottawa, Edmonton, Calgary, Saskatoon, and Saint John was not specified by the company.
An official court filing revealed debts of over $3.3 million to unsecured creditors and about $16,400 owed to secured creditors.
Furthermore, The Body Shop Canada confirmed the cessation of operations for its U.S. counterpart on March 1.
These actions follow the parent company, The Body Shop International Ltd., filing for administration in the U.K., enabling companies to restructure or cease operations without fulfilling their debts.
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British media reported that 75 U.K. stores of the brand would close, and 40% of its headquarters staff would be laid off by February 29.
However, in Canada, The Body Shop expressed its intention to retain most of its stores, hoping that the Ontario court proceedings will provide the necessary “breathing room” to assess strategic alternatives and engage in the restructuring process.
The Body Shop, known for its environmentally friendly approach to selling bath, body, hair, and skincare products, has faced challenges in recent years due to the rise of e-commerce and the intensified competition from beauty brands such as Sephora, Bath & Body Works, and Lush.
As part of its response to these challenges, The Body Shop Canada introduced a new “workshop” concept in 2022, focusing on sustainability education and community involvement. It also expanded its product availability through partnerships with Shoppers Drug Mart.
Prior to its sale to Aurelius Group, The Body Shop established Workshop stores and a partnership with Shoppers Drug Mart, marking significant shifts in its retail strategy.
Aurelius Group, known for restructuring struggling companies, acquired The Body Shop International in a deal aimed at revitalizing the business and paving the way for future success.
Despite speculation about the impact of U.K. administration proceedings on The Body Shop’s Canadian operations, official comments from Aurelius and The Body Shop International remain elusive, with the proceedings primarily affecting the U.K. market.
The brand was founded by environmental activist Anita Roddick in 1976, emphasizing cruelty-free beauty and skincare products developed through ethical relationships with farmers and suppliers.
The Body Shop underwent several ownership changes before being sold to Natura, which later sold it to Aurelius before the recent restructuring process.
The sale to Aurelius highlighted The Body Shop’s global presence with hundreds of company-owned stores and partnerships with franchisees across various regions.
Below is the list of The Body Shop stores closing in Canada across different regions:
Atlantic: Various locations including Champlain Place, Corner Brook Plaza, Mayflower Mall, McAllister Place, and Truro Mall
Ontario: Various locations including Bayview Village, Carlingwood Mall, Cataraqui Town Centre, Dufferin Mall, Fairview Park Mall, and more
Prairies: Various locations including Cornwall Centre, Lawson Heights, Lloyd Mall, Londonderry Mall, Medicine Hat Mall, Midtown Plaza, and more
B.C.: Various locations including Hillside Shopping Centre, Semiahmoo, and Village Green
