Business
The Body Shop Canada Announces Closure of 33 Stores and End of Online Sales Amid Restructuring
The Body Shop Canada has made the decision to close 33 of its stores and discontinue online sales as part of its restructuring efforts, as reported by CBC News. This move comes after the Canadian subsidiary of the UK-based beauty and cosmetics brand filed for creditor protection.
A court filing revealed that The Body Shop Canada owes more than $3.3 million to unsecured creditors and approximately $16,400 to secured creditors. The store closures will impact various cities across Canada, including Toronto, Ottawa, Edmonton, Calgary, Saskatoon, and Saint John, with the exact number of job losses yet to be specified.
Seeking ‘breathing room’ through Ontario court proceedings, the company aims to assess strategic options and engage in the restructuring process. The parent company, The Body Shop International, made headlines recently after being acquired by a private equity firm and entering administration, prompting the potential for restructuring or wind-down without full debt repayment.
Renowned Canadian retail expert Craig Patterson expressed surprise at the decision to cease online sales, citing the potential impact on consumers who rely on e-commerce. While The Body Shop’s 105 stores nationwide remain operational, the closure of online sales adds a unforeseen element to the changes.
Among the list of affected locations set for liquidation sales are Bayview Village, Rideau Centre, Carlingwood Mall, Cataraqui Town Centre, Lynden Park Mall, Stone Road Mall, and numerous other outlets spanning cities from coast to coast.
