The Body Shop files for bankruptcy in US and Canada, closing stores, shutting operations

Ailing British beauty retailer The Body Shop has officially closed its US operations, with Canadian stores also facing imminent closure. Reports indicate that the company has filed for bankruptcy, and out of its 105 Canadian stores, 33 are set to undergo liquidation proceedings, as reported by CNN.

Once celebrated as a B Corp and a pioneer in promoting sustainability, The Body Shop took an early stance against animal testing for many of its products. Despite having changed ownership multiple times, including stints under L’Oréal, Brazil’s Natura, private equity Aurelius, and its original founder Dame Anita Roddick, the company reached its peak with over 2,500 stores across 80 countries.

However, it struggled to recover after the impact of the Covid pandemic, experiencing a 13.5 percent decline in sales in 2022. In November 2023, Aurelius acquired the ethical beauty company for 207 million pounds, yet put it into administration just weeks after becoming its owner.

Despite The Body Shop's challenges, some experts question why a turnaround strategy has not been implemented, considering the potential for the business to be revitalised.