The Body Shop ceases US operations, with plans to close dozens of stores in the UK and Canada

→ My top 100 stocks… (From DTI) (Ad)

The exterior of a Body Shop store is seen, Monday, March 4, 2024, in Toronto. The Body Shop has ceased its U.S. operations on March 1, and is closing dozens of locations in Canada amid deepening financial struggles for the British beauty and cosmetics chain. (Chris Young/The Canadian Press via AP)

NEW YORK (AP) — The Body Shop has ceased its U.S. operations and is closing dozens of locations in Canada amid deepening financial struggles for the British beauty and cosmetics chain.

The Body Shop's U.S. arm ceased operations on March 1, according to a company announcement from earlier this month. And the brand's Canadian subsidiary commenced liquidation of 33 closing stores as part of wider restructuring proceedings.

These closings arrive just weeks after the U.K.-based retailer appointed insolvency administrators set to consider “all options to find a way forward” after years of financial struggles.

A spokesperson for FRP, the administrators hired by The Body Shop International, told The Associated Press Monday that they have also announced plans to shutter 82 of 198 stores total in the U.K. Those closings are expected to occur over the next five weeks.

FRP does not oversee The Body Shop's U.S. or Canadian subsidiaries. A spokesperson for The Body Shop North America did not immediately respond Monday to requests for further information.

In its March 1 announcement, The Body Shop Canada said it had filed for a notice of intention pursuant to the country's Bankruptcy and Insolvency Act “to obtain a stay” of its parent's administration proceedings in the U.K. — and “provide additional breathing room while it evaluates its strategic alternatives and implements certain restructuring initiatives.”

At the time, The Body Shop Canada said its total 105 stores were still open — but that the 33 closings, and end of online sales via Canada's e-commerce platform, were set to arrive “in the near term.”

Specifics about the timing of closings and liquidation for U.S. locations were not immediately provided.

The Body Shop, which founded by Anita Roddick and her husband back in 1976, is often hailed as an early champion of ethical practices in business. The retailer of soaps, creams and makeup has promoted fair-trading practices and products that were not tested on animals.

The brand became hugely popular in the 1980s, when it listed on the London Stock Exchange, and grew to have stores in some 80 countries, including many operated through franchises.

In 2006, Roddick and her husband sold The Body Shop to beauty giant L’Oreal. The brand later was passed on to Brazilian cosmetics business Natura in 2017 — and was then sold to Aurelius, a private equity firm that specializes in buying and turning around troubled companies, late last year in a deal valued at $261 million (207 million pounds).

→ My top 100 stocks… (From DTI) (Ad)

Should you invest $1,000 in London Stock Exchange Group right now?

Before you consider London Stock Exchange Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and London Stock Exchange Group wasn't on the list.

While London Stock Exchange Group currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

These 7 Stocks Will Be Magnificent in 2024 Cover

With average gains of 150% since the start of 2023, now is the time to give these stocks a look and pump up your 2024 portfolio.

Get This Free Report

Featured Articles and Offers

Search Headlines: