Filing for bankruptcy means that The Body Shop's US arm will sell off certain assets to pay creditors.
The Body Shop was launched in 1976 in Brighton, England, by founder and entrepreneur Anita Roddick. (Source: USA Today)
Cosmetics company The Body Shop will cease operations in the US after filing for bankruptcy.
According to court records, last week, the famous British brand filed for bankruptcy under Chapter 7 of the US Bankruptcy Code.
The filing means that the company's US branch will sell off certain assets to pay creditors.
Previously, in early March, The Body Shop also confirmed that it had filed for restructuring of its branches in its home country, the UK, as well as in Canada.
The Body Shop stores in both countries are still operating. Although the company has not made an official statement, it is estimated that about 50 of The Body Shop's stores in the US were still operating at the time of the bankruptcy filing.
The Body Shop was launched in 1976 in Brighton, England, by founder and entrepreneur Anita Roddick. The company quickly expanded its market share worldwide and was acquired by cosmetics giant L'Oréal in 2006 for the equivalent of $1.3 billion.
Then, in December 2023, The Body Shop changed hands again when it was sold to a group of private investors for about $250 million.
After a difficult period of holding on, the company officially "collapsed" in February, after new administrators cited poor management and competition in the challenging retail market./.
According to VNA
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