The Body Shop will be closing dozens more stores and shutting down its US-based operations after filing for bankruptcy.
In recent years, the environmentally-friendly cosmetics company has struggled to navigate an economy impacted by a period of high inflation.
The group has shut down all stores in the United States and will close dozens of stores in Canada as The Body Shop goes ahead with its bankruptcy filing, CNN reports.
Earlier this month, the UK-based company confirmed its US subsidiary is no longer operational as of March 1.
Furthermore, The Body Shop announced that 33 of its 105 stores in Canada will begin liquidation sales immediately.
As well as this, the skin care and perfume retailer said that “online sales via Canada’s ecommerce store will stop”.
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The company is in the process of shutting down stores in the UK as part of an administration process
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At the time, The Body Shop also shared that stores in Canada will remain open for the foreseeable future.
While inflation has eased in the US, a high consumer price index (CPI) rate in recent years has hurt traditional retailers.
Following the pandemic, The Body Shop has been one of the brands worse hit as its based primarily out of shopping malls with consumers turning to buying online instead.
Amid the cost of living crisis, its middle class consumer base have been spending less in order to save money.
In early 2023, former parent company Natura reported that The Body Shop was “(facing) headwinds” with a year-over-year decline of 13.5 per cent the previous year.
According to the company, 2022 was a year that “was far from easy” for the natural beauty company.
During this period, The Body Shop’s direct-to-consumer channels “benefitted during Covid,” returned to “more normalized pre-pandemic levels,” which diminished sales numbers, Natura shared.
In late 2024, the company was sold by Natura to asset management group Aurelius Group for an estimated £266million.
Known for its sustainable and ethical ethos, The Body Shop was founded in 1976 by human rights activist and campaigner Anita Roddick.
The brand was one of the first companies to ban testing on animals for its products and was given a “B corp” certification.
This designation is awarded to companies which meet particular environmental and transparency standards .
Last year, The Body Shop had expanded to more than 2,500 locations in over 80 countries with its online marketplace accessible in more than 60 markets.
LATEST DEVELOPMENTS:
Inflation in the US has eased in recent months but damage has been done to retailers
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In the UK, the company is in the process of shutting nearly half of its 198 stores in the country as part of an administration process.
Here is a full list of the areas that are being impacted by The Body Shop’s store closures throughout this year.
In 2023, there was a 80 per cent surge in retailer store closures in the US, according to Coresight Research.
GB News has contacted The Body Shop for comment.
