The Body Shop is in the doldrums. The cosmetics retailer, according to The Guardian, has declared bankruptcy in the United States and Canada. The company admits the difficulties it is facing in paying its suppliers in Australia and is leaving behind the group's most profitable businesses in the UK.
The Body Shop has already closed 50 shops in the US, and as The Guardian points out, last Saturday the company filed for Chapter 7 insolvency, which allows assets to be sold to pay off debts. Around 400 jobs, including those at a distribution centre, are exposed to job cuts.
The company has not only closed its doors for good in the United States, but has also closed 33 of its 105 shops in Canada, resulting in the loss of employment for 200 of the company's employees. The Body Shop also admits to difficulties in Australia, where it has almost 100 shops. Sources told The Guardian that a profitable part of the business from other markets could cover day-to-day costs from cash flow, but would need other sources of income to meet debts owed to suppliers.
Last February, The Body Shop filed for insolvency proceedings in the UK, a country in which it is going through a delicate situation and which threatens the stability of up to 2,000 of the company's employees.
The Body Shop was acquired by Aurelius at the end of 2023 and since the new owner arrived the company has been breathing uncertainty and unease. Also early last month, The Body Shop divested a large part of its business in Europe and Asia. All these moves also coincide with the departure of The Body Shop's managing director in the UK and Ireland, and in January, the departure of Ian Bickley, who served as the company's interim CEO, was also announced.