The Body Shop Files for Bankruptcy: A Look Back at the Natural and Ethical Cosmetics Brand’s Journey
The Body Shop, a renowned cosmetics company known for its natural, sustainable, ethical, and cruelty-free products, has announced the cessation of all its US operations and the impending closure of 33 Canadian store locations. In a company statement released earlier this month, The Body Shop’s US subsidiary officially declared bankruptcy, effective March 1, 2023.
The Body Shop, founded in the UK in 1976 by Anita Roddick, a human rights activist and environmental campaigner, was one of the first companies to take a firm stance against animal testing for many of its products. Over the years, this forward-thinking brand expanded globally and by 2023 boasted over 2,500 retail locations in more than 80 countries, with contact availability in over 60 markets.
A Proud History of Change and Growth
Since its humble beginnings, The Body Shop has experienced various transitions. In 2006, it was purchased by cosmetics giant L’Oréal for over a billion dollars. Later in 2017, the brand was sold to Brazilian company Natura for a similar amount. The Body Shop has faced challenges in recent years, with a decline of 13.5% in sales in 2022. In Natura’s annual report, it was noted that The Body Shop “faced headwinds,” as its direct-to-consumer channels returned to “more normalized pre-pandemic levels.” These developments negatively impacted sales figures for the brand.
A New Chapter with Aurelius
Late last year, The Body Shop was acquired by asset management group Aurelius for approximately $266 million. However, the brand’s struggles continued, culminating in the recent decision to close its US operations and Canadian store locations, except for those that are already in the process of liquidation.
A Look Back at The Body Shop’s Legacy
The Body Shop has been a pioneer in the cosmetics industry, with its commitment to natural ingredients, sustainability, and ethical business practices. Its dedication to these principles earned it the B Corp certification in 2019 – a designation reserved for companies that meet transparency and environmental consciousness standards.
From its origins as a small storefront to its expansion into an international brand, The Body Shop has made significant strides in the world of cosmetics. Though this new chapter marks a significant change for the company, its legacy as an ethical and environmentally-conscious brand will continue to inspire and influence the industry at large.
Stay tuned for updates on The Body Shop’s restructuring efforts and future plans.
