The UK-based cosmetics giant, The Body Shop, has made the decision to close all its operations in the United States, with plans to shut down numerous stores across Canada after declaring bankruptcy, according to reports from the media.

In an official statement released earlier this month, The Body Shop announced the cessation of its US subsidiary's operations, effective March 1st.

The announcement also revealed that 33 out of the 105 Canadian stores will commence liquidation sales immediately. Additionally, online sales through Canada's e-commerce platform will cease. Despite these changes, all Canadian stores will remain open for the time being, the report read.

Reports suggest that rising inflation in recent years has had a significant impact on traditional retailers, particularly those, like The Body Shop, primarily located in malls and catering to middle-class consumers.

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.

In 2019, The Body Shop earned certification as a "B Corp," signifying its adherence to specific transparency and environmental standards.

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.

The Body Shop has undergone several ownership changes since its inception. It was acquired by cosmetics giant L'Oreal in 2006 for over a billion dollars and later sold to Brazilian company Natura in 2017 for a similar sum,as per reports.

Despite its storied history, the brand has faced challenges in recent years.

In an early 2023 report, Natura acknowledged that The Body Shop was encountering difficulties, citing a 13.5% year-on-year decline in 2022. The company attributed this decline to a challenging business environment, remarking that the brand's direct-to-consumer channels, which saw a surge during the COVID-19 pandemic, had reverted to pre-pandemic levels, further impacting sales.

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

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