A Body Shop store in Toronto on March 4. By mid-May, The Body Shop had just 72 locations left in Canada, down from 105.Chris Young/The Canadian Press
The Body Shop Canada has found a buyer.
More than nine months after filing for creditor protection, the retail chain known for its pungent locations peddling creams, lotions and perfumes will seek court approval Friday to sell its remaining assets, according to a legal filing. Serruya Private Equity, which is run by Michael Serruya, the Canadian co-founder of Yogen Früz, was identified as the buyer.
Financial terms of the transaction were redacted from the legal filing, though it noted the purchase price comprises cash and the assumption of certain liabilities. As of Feb. 26, The Body Shop Canada owed more than $3.3-million to its creditors, according to documents filed with the Office of the Superintendent of Bankruptcy Canada in March.
In a Dec. 9 report, The Body Shop Canada’s court-appointed monitor estimated that the company owed between $11.5-million and $12.5-million to its creditors.
Mr. Serruya did not immediately respond to a request for comment on how much he is paying to add The Body Shop to his retail portfolio. In addition to Yogen Früz, Serruya Private Equity owns stakes in Second Cup Coffee Co., St. Louis Bar & Grill, Swensen’s ice cream and The Dirty Bird fried chicken and waffles.
The Body Shop had 105 stores across Canada and employed more than 700 people as of March 1, but 33 of those locations immediately began liquidation sales once the Canadian chain filed for creditor protection. By mid-May, The Body Shop had just 72 locations left in Canada.
As of Dec. 7, The Body Shop had approximately 600 Canadian employees, including seasonal workers, the legal filing said. The document also said Serruya will offer employment to approximately 400 of the company’s employees and 100 of its seasonal employees, suggesting that roughly 100 staff will be laid off.
German private-equity firm Aurelius Investment acquired The Body Shop’s British parent in November, 2023, for £207-million, or roughly $350-million at the time, and immediately began restructuring its operations.
The company was originally founded in 1976 by Dame Anita Roddick first came to Canada in 1980 and remained family-owned until 2006 when it was acquired for £652-million by French cosmetics giant L’Oréal. Brazilian cosmetics company Natura & Co. bought the chain from L’Oréal in 2017 for €1-billion.
When it was acquired by Aurelius, The Body Shop had 900 corporate-owned stores and roughly 1,600 franchised locations across 89 markets with roughly 7,000 employees in total.
Alvarez & Marsal Canada initiated a sale process of The Body Shop Canada in June, initially reaching out to 55 parties, 30 of which were Canadian and 25 based in either the United States or internationally. Of those, 21 signed confidentiality agreements and four eventually submitted bids, though only two bids were deemed qualified as one was only a preliminary expression of interest and another was a joint-venture proposal.
Serruya Private Equity settled franchise terms with The Body Shop’s British parent in late November.
While The Body Shop was among the first to brand its products as ethical and sustainable over the past half-century, the retailer has struggled against fierce competition in recent years as rising demand for such products has led to an increasing number of providers fighting for customers.
“Today, there are more and more brands following in our footsteps,” The Body Shop’s website says, “and we’re glad to welcome them aboard.”