UK-based cosmetics company The Body Shop has made headlines after shutting down all its US-based operations and announcing the closure of numerous Canadian store locations following its bankruptcy filing.
The closure of the US subsidiary, effective March 1, was officially announced earlier this month. The company’s downfall is attributed to high inflation in recent years, particularly affecting traditional retailers like The Body Shop, which primarily operated in malls and targeted the middle class demographic.
Founded in 1976 by human rights activist Anita Roddick, The Body Shop gained recognition for its natural, sustainable, ethical, and cruelty-free products. It was among the pioneers in banning animal testing for many of its items and received certification as a “B Corp” in 2019 for meeting transparency and environmental standards.
Despite its global presence, with over 2,500 retail locations across 80 countries and an extensive online market, The Body Shop faced challenges. Acquired by L’Oreal in 2006 and later sold to Natura in 2017, the brand struggled financially, recording a 13.5% decline in 2022.
In a bid to revive its fortunes, The Body Shop was sold to asset management group Aurelius late last year for approximately USD 266 million.