The Body Shop Canada explores sale as demand outpaces inventory: court filing
By The Canadian Press on April 19, 2024.
TORONTO – The Body Shop Canada is exploring a sale as it struggles to get its hands on enough inventory to keep up with “robust” sales after announcing it would file for creditor protection and close 33 stores. In an affidavit filed in a Toronto court this week, the head of the retailer’s Canadian operations says he has seen enough interest in the business from unspecified parties to believe the company should pursue a sale. Jordan Searle says it’s unclear whether parent company The Body Shop International Ltd. will support a sale or try to preserve the retailer’s Canadian operations. The parent company filed for administration in the U.K. on Feb. 13, while The Body Shop Canada announced plans to seek creditor protection at the start of March, when its U.S. business also revealed it would close. Since the Canadian announcement and wind-down of dozens of stores, Searle says the retailer’s sales have outpaced its projections but the chain hasn’t been able to get inventory because it relies on the U.S. and U.K. divisions for merchandise. He says the Canadian portion of the chain is facing an imminent risk of running out of core merchandise in the coming weeks and could be forced to close otherwise profitable store locations. This report by The Canadian Press was first published April 19, 2024. 8-7
