Another one bites the dust.
Following the endless list of mall-retailer bankruptcies that have occurred since Covid further made in-person shopping more irrelevant than it was in years prior, one more name is joining the list: The Body Shop.
Since its inception in 1976 by Anita Roddick in the United Kingdom, The Body Shop has navigated through various ownerships, and recently, it has been embroiled in a highly publicized struggle for survival, The Street reported last week.
This struggle was initially signaled by the closure of half its UK stores, subsequently leading to a restructuring process in Canada and a sudden shutdown of its operations in the U.S. on March 4.
"The Canadian subsidiary of the global beauty and cosmetics brand announced it has started restructuring proceedings by filing a Notice of Intention (NOI) to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). In the same release, the company said that, as of March 1, 2024, The Body Shop US Limited has ceased operations," a report from Chain Store Age said days ago.
A vague message on the U.S. website of the company hinted at temporary maintenance; however, the persistence of this message, coupled with a new filing, indicates a permanent closure rather than a temporary outage
According to The Street, the company's website reads: "We're currently undergoing planned maintenance, but don't worry we're due to be back online soon."
The Guardian followed on by reporting: "The US arm of the ethical cosmetics group has ceased trading at its 50 outlets. On Saturday (March 9), it filed for Chapter 7 insolvency, under which assets are sold off to clear debts, putting about 400 jobs at risk including those in a distribution center that still holds millions of dollars worth of stock."
