NEW YORK (AP) — The Body Shop has halted its U.S. operations and closed dozens of locations in Canada amid the British cosmetics chain's worsening financial struggles.
The Body Shop's U.S. branch will cease operations on March 1, according to a company announcement earlier this month. The brand's Canadian subsidiary has begun liquidating 33 closed stores as part of broader restructuring measures.
These closures arrive just weeks after the UK retailer Appointment of insolvency administrators She is set to consider “all options to find a way forward” after years of financial difficulties.
A spokesman for FRP, officials appointed by The Body Shop International, told The Associated Press on Monday that they have also announced plans to close 82 of the 198 stores in the U.K., and those closures are expected to take place over the next five weeks.
FRP does not supervise The Body Shop's subsidiaries in the United States or Canada. A spokesperson for The Body Shop North America did not immediately respond Monday to requests for more information.
In its March 1 announcement, The Body Shop Canada said it had filed for a notice of intent under the country's Bankruptcy and Insolvency Code to “obtain a stay” of its U.K. parent company's administrative proceedings — and “provide additional breathing room as it operates.” It evaluates strategic alternatives and implements some restructuring initiatives.
At the time, The Body Shop Canada said a total of 105 of its stores remained open — but the 33 closures, and the end of online sales via the Canadian e-commerce platform, were set to arrive “in the near term.”
Details about the timing of the closures and liquidations of the US sites were not immediately provided.
The Body Shop, which he founded Anita Roddick and her husband in 1976, are often hailed as early advocates of ethical practices in business. The retailer of soaps, creams and makeup has promoted fair trade practices and products that are not tested on animals.
The brand became hugely popular in the 1980s, when it was listed on the London Stock Exchange, and has grown to have stores in around 80 countries, including many operated through franchises.
In 2006, Roddick and her husband sold The Body Shop to beauty giant L'Oréal. The brand was later transferred to Brazilian cosmetics company Natura in 2017 – which was then sold to Aurelius, a private equity firm that specializes in buying and turning around distressed companies, late last year in a deal valued at $261m (£207m). ). .
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