Popular UK cosmetics brand The Body Shop has filed for Chapter 11 bankruptcy in the United States, leading to the closure of all its US operations. The company will also be shutting down a significant number of stores in Canada.

The Body Shop officially announced the closure of its US subsidiary on March 1st, 2024. This move follows a challenging financial period, with reports suggesting rising inflation significantly impacting traditional retailers, especially those like The Body Shop that cater to middle-class consumers and operate primarily in malls.

Founded in 1976 by human rights activist and environmentalist Anita Roddick, The Body Shop is renowned for its range of products marketed as natural, sustainable, ethical, and cruelty-free. It was among the pioneers in banning animal testing for many of its products.

By 2023, the company had expanded its presence to over 2,500 retail outlets across more than 80 countries, with online availability in over 60 markets.

Despite its rich history, The Body Shop has faced recent struggles. In early 2023, its parent company, Natura, reported a 13.5% sales decline for The Body Shop in 2022 compared to the previous year. This decline was attributed to a challenging retail environment and a shift back to pre-pandemic consumer behavior, with direct-to-consumer channels experiencing a drop after a surge during the COVID-19 lockdowns.

Furthermore, in late 2023, The Body Shop was sold to asset management group Aurelius for approximately USD 266 million.

The Body Shop's Canada operations are also undergoing restructuring. While all Canadian stores remain open for now, 33 locations will begin liquidation sales immediately. Additionally, online sales through Canada's The Body Shop e-commerce platform will cease.

It's unclear at this point if The Body Shop plans to reopen stores in the US in the future. Consumers looking for Body Shop alternatives can find similar cruelty-free and ethically sourced beauty products from various brands.

UK Cosmetics Co, The Body Shop Shuts Down Op, Canadian Stores to Follow

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