Your favourite beauty brand has filed for bankruptcy!

The Body Shop

, a renowned cosmetics company based in the UK but a brand which has a global presence, has made the decision to close down its operations in the United States and is set to shut down numerous store locations across Canada after declaring bankruptcy, as reported by CNN.
In an official statement released earlier this month, The Body Shop announced the cessation of its US subsidiary, effective March 1.

Additionally, it disclosed that 33 out of its 105 stores in Canada will commence liquidation sales immediately. The company also stated that online sales via its Canadian e-commerce platform will cease, although all Canadian locations will remain operational for the time being, according to CNN.
The challenging economic environment, marked by high inflation in recent years, has posed significant hurdles for traditional retailers like The

Body Shop

, particularly those situated in malls and catering to middle-class consumers.

Established in 1976 by Anita Roddick, a prominent human rights activist and environmental advocate, The Body Shop has gained recognition for its line of products promoted as natural, sustainable, ethical, and cruelty-free. Notably, it was among the pioneers in implementing a ban on animal testing for many of its offerings.
In 2019, The Body Shop earned certification as a “B Corp,” reflecting its commitment to transparency and environmental responsibility. By 2023, the company had expanded its presence to more than 2,500 retail outlets across 80 countries, with products available for purchase online in over 60 markets.

Despite its initial success, The Body Shop has undergone multiple ownership changes over the years. Acquired by cosmetics conglomerate L’Oreal in 2006 for over a billion dollars, it was later sold to Brazilian company Natura in 2017 for a similar amount. However, the brand has encountered challenges in recent times.

According to reports, Natura acknowledged in early 2023 that The Body Shop was facing significant challenges, experiencing a year-over-year sales decline of 13.5% in 2022. The company attributed this decline to a challenging business environment and a return to normalcy in consumer behavior following the pandemic.
In late 2023, The Body Shop was sold to asset management group Aurelius for approximately $266 million, signaling a significant shift in ownership, as reported by CNN.