Canada has been hit with another major retailer entering into restructuring proceedings. The Body Shop Canada today filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act.
The filing in Canada follows a similar filing by its parent company in the United Kingdom. The filing is reportedly being made in an attempt to provide “additional breathing room” by obtaining a stay of proceedings, enabling the corporation to evaluate strategic alternatives and conduct a restructuring.
The company, with 105 locations across Canada, is immediately liquidating 33 locations across the country, which will be shuttered once liquidation is complete. The Body Shop’s other locations will remain open for business, with online sales will be halted.
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The filing for bankruptcy protection notably follows Aurelius acquiring The Body Shop International in December 2023 from Natura & Co for £207 million. The company as a whole is said to employ 7,000 people, with operations in 89 markets via more than 900 company owned stores and 1,600 franchised locations.
Filings made in connection with the bankruptcy of the Canadian subsidiary indicate that the company owes creditors approximately $3.34 million.
Information for this briefing was found via the company and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
