High inflation in latest years has damage conventional retailers, notably these like The Body Shop that predominantly operated out of malls and had been aimed on the struggling center class. (Reuters File Photo)
The Body Shop will quickly be closing dozens of Canadian retailer places as the corporate information for chapter
The Body Shop, a UK-based mostly cosmetics firm, has shut down all of its US-based operations and can quickly be closing dozens of Canadian retailer places as the corporate information for chapter, in accordance with a CNN report.
Earlier this month, The Body Shop had stated its US subsidiary was not operational, efficient March 1.
The firm additionally stated that 33 of its 105 shops in Canada will start liquidation gross sales instantly and “online sales via Canada’s e-commerce store will stop”, however that every one Canadian places will stay open in the interim, CNN reported.
The report additionally stated excessive inflation in latest years has damage conventional retailers, notably these like The Body Shop that predominantly operated out of malls and had been aimed on the struggling center class.
The Body Shop was based in 1976 in the UK by human rights activist and environmental campaigner Anita Roddick. It was one of many first firms to ban testing on animals for a lot of of its merchandise.
In 2019, it was licensed as a ‘B Corp’, a designation given to firms that meet sure transparency and environmental conscientiousness requirements.
By 2023, it had expanded to greater than 2,500 retail places in greater than 80 international locations and was accessible to buy on-line in greater than 60 markets.
Since its inception, The Body Shop has modified palms a number of occasions. It was bought by cosmetics big L’Oréal in 2006 for greater than a billion {dollars}, earlier than being bought to Brazilian firm Natura in 2017 for one more billion {dollars}, in accordance with the CNN report.
The model has been ailing in latest years. In an early 2023 report, Natura famous that The Body Shop was “(facing) headwinds” with a yr-over-yr decline of 13.5 per cent in 2022, a yr the corporate stated “was far from easy” for the model. Its direct-to-shopper channels, which had “benefitted during Covid”, returned to “more normalised pre-pandemic levels”, additional impacting gross sales numbers, Natura stated.
Moreover, late final yr, The Body Shop was bought to asset administration group Aurelius for about $266 million, in accordance with the CNN report.
