New Delhi: The Body Shop, a popular cosmetics company, announced on March 1 that it is filing for bankruptcy, closing all of its U.S.-based stores. The company also said that it will soon be closing dozens of its Canadian locations.
The Body Shop, founded in 1976 by human rights activist and environmental campaigner Anita Roddick, is known for products it markets as natural, sustainable, ethical and cruelty-free.
It was one of the first companies to prohibit testing on animals for many of its products, according to CNN. Later in 2019, it was certified as a “B Corp,” a designation given to companies that meet certain transparency and environmental conscientiousness standards.
The company’s recent performance has been challenging, with sales down 13.5% in 2022.
This was due to a number of factors, including high inflation and a slowdown in demand for cosmetics.
The Body Shop’s UK-based parent company, L’Oreal, also recently sold a majority stake in the brand to Natura, which could further destabilize the business.