This cosmetics mall retailer now makes unexpected closures after filing for bankruptcy last year when it claimed to be insolvent.
The Body Shop, a U.K.-based skincare and cosmetics brand, decided in mid-February to enter into administration (the English version of bankruptcy protection) with Aurelius, a European private equity firm.
The Body Shop had been sold to Aurelius in late 2023 for $254.32 million.
The firm determined that The Body Shop was insolvent, and announced that it would close up to half of its 200 stores in the U.K., including several stores in London.
It would also cut 40% of its headquarters workforce, also based out of London.
Seven stores are closing immediately, including:
- Surrey Quays, London
- Oxford Street, London
- Canary Wharf, London
- Cheapside, London
- Nuneaton, Warwickshire
- Ashford town centre, Kent
- Queens Road, Bristol
The remaining stores are expected to close shortly.
The Body Shop has also divested its operations in mainland Europe and Asia, saying it aims to maintain a consolidated footprint more focused on its roots in the U.K.
“A reduced store footprint will coincide with a renewed focus on the brand’s products, online sales channels and wholesale strategies,” a spokesperson at FRP Advisory, the firm overseeing the process, said.
Aurelius, for its part, said The Body Shop’s performance over the holidays and beyond was “worse than [their] worst-case assumptions,” which is ultimately what spurred the firm to begin the insolvency process.
It remains The Body Shop’s main secured creditor, which means it will be first to receive payments from the company as it rights the ship.
Still, not all stores will be affected, and The Body Shop expects to maintain a relatively large footprint in the U.K, reports TheStreet.
“It is expected that at the conclusion of the restructuring, more than half of The Body Shop’s 198 UK stores will remain open,” FRP Advisory said.
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Also Read: A Famous Restaurant Chain Now Closes 4 Locations in Florida
Other Economy News Today
A massive retailer with 1,050 stores now makes unexpected closures as it struggles with sales, the CEO confirmed.
Best Buy is closing up to 20 stores this year after chief executive officer Corie Barry warned of a declining store count.
The retailer has around 1,050 locations nationwide but is struggling with sales, reports The-Sun.
Best Buy is closing between 15 and 20 stores in 2024, with various stores shuttering March 2nd.
These include the locations in Stafford, Virginia, Apple Valley, Minnesota, and Kansas City, Missouri.
Chief executive office Corie Barry warned last November that such closures were on their way.
“We expect to close roughly 15-20 stores per year in the near term,” she said during an earnings call.
Over the past 5 years, Best Buy has closed approximately 100 stores.
That represents a 10% decline in store count.
Meanwhile, Best Buy is converting some existing stores into discount stores, such as the location in East Northport, New York.
Up to 10 additional outlet stores may also open, according to Barry.
Best Buy is having to make some changes to keep up with new shopping habits.
It’s been a constant in the US retail landscape since the company was founded in 1966.
But it is facing increasing competition from online stores.
To demonstrate the value of physical shopping, some Best Buy stores are being turned into “Experience Stores.”
At these locations, customers will enjoy an “immersive and inspirational” shopping experience as they try out new tech with the help of Best Buy experts.
The retailer has also decided to stop selling DVDs, making room for new products and innovations in stores.
Also Read: Grocery Store With 217 Locations Now Closes For Good
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