The Body Shop Declares Bankruptcy, Closes All US Stores.

Published on 12 March 2024, by Juliette Blanc | CA, USA.

In a surprising turn of events, The Body Shop, a renowned UK-based cosmetics company, has filed for bankruptcy, leading to the closure of all its operations in the United States and the impending shutdown of several Canadian stores. The move comes amidst reports of high inflation, particularly affecting traditional retailers like The Body Shop, which predominantly operate in malls and target the middle class.

Founded in 1976 by Anita Roddick, The Body Shop became well-known for its natural and ethical products. However, despite changing hands several times—first to L'Oreal in 2006 and then to Natura in 2017—the brand struggled to keep up in recent years.

Natura's report in early 2023 showed that The Body Shop's sales fell by 13.5% in 2022. The brand couldn't sustain the boost it got during the COVID-19 pandemic, and with the return to normalcy, sales suffered even more. To make matters worse, the company was sold to Aurelius for about USD 266 million last year.

The switch to Aurelius, a different owner, added to The Body Shop's troubles, making it harder for the company to stay in business.

As a result of the bankruptcy, all The Body Shop stores in the US are closing, effective March 1. In Canada, 33 out of 105 stores will have closing sales, and online sales will stop, leaving the fate of the remaining stores uncertain.

The shutdown of The Body Shop's US stores highlights the tough times faced by traditional retailers due to higher prices. The struggles of this once-popular brand also shed light on the challenges that ethical and sustainable beauty companies are facing in the competitive market.